Tag: Rivaan Roopnarain
Banks profitability and growth strengthen sector stability
South Africa's economic recovery gained credible momentum in 2025. GDP recorded its fifth consecutive quarter of growth in Q4-2025. This pushed the annualised rate to 1.1% for 2025. The Government of National Unity's reform agenda supported this growth. The end of load shedding also contributed. In addition, recovering consumer and business confidence strengthened the outlook.
Major banks analysis – resilient performance amid challenges
South Africa’s major banks maintained steady growth in 2024 despite a challenging operating climate and macroeconomic uncertainties. Combined headline earnings grew by 5.9%, reaching R119 billion. This surpassed FY23 results. The combined ROE stood at 17.5% (FY23: 17.6%). The net interest margin was 451 bps (FY23: 459 bps). The credit loss ratio improved to 89 bps (FY23: 102 bps).
Major banks analysis – solid foundations, challenging conditions
South Africa’s major banks registered resilient growth against difficult operating conditions and a complex macroeconomic environment. Combined headline earnings growth of 13.8% against FY22 to R113.2 billion, combined ROE of 17.6% (FY22: 17.1%), net interest margin of 458 bps (FY22: 430 bps), credit loss ratio of 102 bps (FY22: 82 bps), cost-to-income ratio of 52.2% (FY22: 53%), common equity tier ratio of 13.2% (FY22: 13.5%).
