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Private Banking and Wealth Management Survey 2012

September 1998

Can the local banks hold on?


When their country was isolated by sanctions, South African banks had it easy. Now foreign competitors are eating away at their share of the most profitable business. Sam Swiss reports.


The world's their oyster
Focus is the buzzword
Manuel takes the long view

South Africa's biggest local banks are under attack. They still dominate the retail market but mergers have increased competition and they are at varying stages of rationalization to achieve sharper focus. At the high end of the market ­ corporate, investment and private banking they are losing market share to foreign banks and niche players.

Says Terry Davidson, general manager of Citibank: "Three years ago the big four [Standard, Nedcor, FNB and Absa] had 80% to 85% of market share and dominated in every area. Today they are losing market share." Grant Dunnington, general manager at First National Bank, agrees: "Ten years ago the market share of the big four was 90%. Now it has fallen to 76%."

The foreign banks are the biggest threat. They have been pouring into South Africa in the past six and...


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