South Africa’s major banks remain resilient

South Africa’s four major banks
South Africa’s four major banks

The financial results of South Africa’s four major banks (Absa, FirstRand, Nedbank and Standard Bank) for the year ended 31 December 2012 have remained resilient amidst the recent global economic turmoil, according to a report issued by professional services firm PwC today.

Tom Winterboer, PwC Financial Services Leader for Africa and Southern Africa, says: “Despite having weathered the economic uncertainty, the major banks will find it difficult to return to previous levels of profitability as a result of regulatory challenges, such as compliance with revised Basel II.5 rules that have been phased in from 1 January 2012 and two of the major credit agencies revising the country’s outlook from stable to negative.

“However, South African banks still have some of the strongest capital levels worldwide and we expect the major banks to remain resilient and continue to produce solid financial results in the coming quarter.”