Best bank: Standard Bank
A strong financial performance together with a series of new initiatives, including in environmental, social and governance, make Standard Bank Euromoney’s best bank in South Africa this year.
The bank continued to steadily grow its total assets from R2.88 trillion ($150 million) at the end of 2022, to reach R3 trillion
at the end of 2023. It also saw impressive profit growth of 29% on 2022 at R50.3 billion.
In July, the bank partnered with the IFC for a seven-year $250 million sustainable loan for renewable energy and affordable housing in South Africa. It also developed its carbon-credits offering and launched conservation-financing and transition-financing initiatives.
A nature conservation loan to conservation and hospitality company Wilderness marked the first such deal in the whole African market, and demonstrated the potential for commercial banks to mobilise funds for nature conservation and biodiversity protection in the continent. The loan is set to help Wilderness expand the land under its remit for conservation efforts.
In August, Standard Bank agreed to continue its partnership with Chinese lender ICBC. The two banks facilitated trade flows between Africa and China worth $600 million last year.
Best investment bank: Rand Merchant Bank
Rand Merchant Bank (RMB) had a good year in M&A and debt markets, and is Euromoney’s best investment bank in South Africa for 2024.
The bank acted as sole financial adviser to Scatec, a leading global renewable energy solutions provider, on a $102 million capital investment from Climate Fund Managers in Release by Scatec, which provides an innovative, containerized solar solution to address rapidly growing energy demand and local access challenges that exist across Africa.
The transaction was one of the largest capital raises to have ever been concluded in the African non-utility solar power sector.
The bank also worked on Life Healthcare’s £910 million sale of its interest in Alliance Medical Group (AMG). It was South African financial adviser, sponsor and corporate broker to Life Healthcare and advised the client on the implications of the sale for its various debt facilities.
Best international investment bank: BofA Securities
In 2023, BofA Securities worked on Investec Property Fund’s internalization of asset management functions in South Africa and Europe, which involved transactions totalling R975 million ($54 million).
It also acted as joint financial adviser and JSE sponsor to Royal Bafokeng Platinum during its acquisition by Implats and Northam.
It was also financial adviser to Bidvest in September 2023 for its acquisition of Consolidated Property Services Australia. The transaction underscored the bank’s strength in M&A in both South Africa and Australia, supporting Bidvest’s offshore expansion strategy in facilities management, hygiene services and plumbing product distribution.
The bank also worked on a $500 million convertible bond deal for Sibanye Stillwater. This was the largest metals and mining optional convertible bond in Europe, Middle East and Africa since 2010.
Best digital bank: Nedbank
In 2023, Nedbank expanded its digital channels and increased the number of active digital users. Around 55% of all retail sales were digital by the end of 2023.
Digital transaction volumes rose by 12% year on year in South Africa, with transaction values up by 10% year on year. The bank’s Money app saw an 18% increase in transaction volumes last year.
The bank accounts for 28% of digital PayShap payments in the country. It has registered over 200,000 ShapIDs and processed more than three million transactions.
Best bank for SMEs: Absa
In 2023, Absa increased sales in the small and medium-sized enterprise segment by 48%.
The bank introduced Absa Business She Thrives and Absa Emerging Entrepreneur, solutions for women and youth business owners to address challenges such as access to finance and skill development. These initiatives include a six-month fee waiver on new Business Evolve accounts, a 0% initiation fee on working capital funding, alternative lending up to R5 million ($166,000) through the Enterprise Development programme, a discount of up to 35% on short-term insurance premiums, and free membership to the National Small Business Chamber.
The bank also improved its Enterprise and Supplier Development proposition to boost SME financial inclusion. The new credit policy evaluates SMEs based on expected contract cashflows and allows them to draw funds as needed, with interest accruing only on drawn amounts.
Best bank for ESG: Standard Bank
In 2023, Standard Bank executed its first two pure play sustainable finance transactions totalling R2.1 billion ($116 million). These transactions provided funding to companies generating at least 90% of revenue or earnings from eligible green and social activities.
The bank also launched its first transition loan with the Lephalale Solar Project, a 66-megawatt solar energy initiative aimed at cutting emissions from Exxaro’s Grootegeluk coal mine by 36%.
It collaborated with GoSolr to enhance access to renewable energy solutions through a subscription-based model offering home power generation and backup services. The bank was mandated lead arranger for a R1.8 billion green growth capex facility.
It also worked on financing for the African Stove Company, which distributes fuel-efficient cooking stoves in Africa financed through carbon credit sales. This initiative marked the first carbon credit project financing of its kind in Africa. The bank also launched its first nature conservation loan in 2023.
Best bank for corporate responsibility: First Rand
In 2023, First Rand donated R268 million ($14.8 million) to the FirstRand Foundation, supporting initiatives for education, financial inclusion and community resilience.
One example is the FirstJob programme, which provides 12 months of work experience to unemployed graduates.
It also helps employees through the FirstRand Staff Assistance Trust. This assists black employees with salaries below a certain level and their immediate families by addressing educational, healthcare and other needs. With an endowment of approximately R1 billion, the Trust provided direct support to 5,281 employees in 2023.
Bank staff also contribute through RMB Volunteers, which has been operational for over two decades. They dedicate time and expertise to schools and non-profits.
Best bank for diversity and inclusion: Nedbank
In 2023, Nedbank supported employee wellbeing, enhanced human resources systems, and supported initiatives in youth employment and education.
The bank organized 11 health screening days across all campus sites, benefiting 1,611 employees. It also introduced new cloud-based HR systems to improve talent management.
In 2023, the bank received recognition at the UN Women’s Empowerment Principles Gender Mainstreaming awards, securing the gender responsive marketplace award and ranking second among listed companies in both the economic empowerment and women in the community categories.
It also continued its efforts to address South Africa’s youth unemployment crisis by recruiting 2,820 participants through the Youth Employment Service. The bank has supported the Thuthuka Bursary Fund since 2006 and funded 45 students in 2023 with a contribution totalling R4.5 million ($249,000). The Nedbank Educational Trust disbursed R26 million in 2023, including a R12.5 million donation to universities to settle the educational debt of high-performing disadvantaged students pursuing qualifications in scarce and future skills fields.
Best bank for corporates: Standard Bank
In 2023, Standard Bank completed five sustainable finance transactions totalling R16.8 billion ($930 million) and provided finance for 22 project and export finance deals.
The bank worked on the first commercial bank carbon credit financing on the African continent with the African Stove Company (TASC) improved cookstoves project. This deal is expected to act as a blueprint for future carbon credit projects in South Africa and the broader African market.
The bank worked on the R14.5 billion financing for The Foschini Group, a R256 billion deal for Maziv Proprietary and a R2 billion deal for MTN. It was involved in the R10.5 billion financing for EDF Renewables’ 420-megawatt Koruson Wind Cluster, as well as the R194 million deal for TASC.
