Another bank calls it quits in South Africa
Sasfin plans to close its Business and Commercial Banking (BCB) business in 2025, joining a growing list of financial companies exiting their South African banking operations.
In its delayed financial results for the year ended 30 June 2024 (FY24), Sasfin said that its BCB business suffered increased losses.
Thus, the group plans to exit the BCB business by the end of 2025, meaning that Sasfin will no longer have any banking operations in South Africa.
The move forms part of South Africa’s broader strategic reset, which the group announced in 2023. This reset includes selling its Specialised Finance and Commercial Solutions businesses.
It is also finalising the sale of its Capital Equipment Finance and Commercial Property Finance businesses to African Bank for over R3 billion.
Although the overall group recorded a R60 million loss in FY24, it said that its core business, Wealth and Rental Finance, continued to perform well.
The group also plans to delist from the Johannesburg Stock Exchange (JSE).
“Following the proposed delisting, the group will continue its strategic reset by divesting from non-core
activities, including BCB,” said the group.
“This business has built strong capabilities over the years, holding significant inherent value with the potential to thrive in a different environment.
“This strategy will enable us to focus on our core Wealth and Rental Finance businesses. Significant progress has been made by exiting non-core activities and navigating challenges, positioning us well to execute the remaining strategy in the months ahead.”
Joins a growling list
Sasfin’s decision follows a series of international and local banks that also called it quits.
UK-based bank HSBC recently announced that it has reached an agreement to transfer its branch business in South Africa to FirstRand Bank.
The sale will include transferring the branch’s clients and banking assets and liabilities and will provide transferred clients with continued access to banking services in South Africa.
HSBC’s branch employees will also transfer to FirstRand as part of the agreement.
Subject to regulatory and governmental approvals, the transaction is expected to be completed in the fourth quarter of 2025.
HSBC South Africa will serve its branch clients as usual until the business transfer is completed.
Furthermore, the sixth-largest bank in the world, BNP Paribas, is no longer operating as a bank in South Africa.
In 2012, the French company was permitted to conduct business as a bank in South Africa through a branch.
Nevertheless, the group has started scaling back from its non-core operations across Africa, with its focus fixed on Europe and Asia.
BNP Paribas’s ability to conduct a bank’s business via a branch was withdrawn on 8 March 2024 following a government gazette signed by Prudential Authority CEO and South African Reserve Bank Deputy Governor Nomfundo Tshazibana.
Although it no longer operates as a bank in South Africa, BNP Paribas is still the owner of credit provider RCS.
When it comes to local players, the Bidvest Group also plans to dispose of Bidvest Bank and FinGlobal.
The group said it will position these businesses for the next growth phase while also recycling capital.
Bidvest’s management aims to identify a suitable buyer by the end of the 2024 calendar year.
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