{"id":129170,"date":"2016-07-05T19:30:24","date_gmt":"2016-07-05T17:30:24","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=129170"},"modified":"2016-07-05T17:31:13","modified_gmt":"2016-07-05T15:31:13","slug":"south-african-banks-lost-r80-billion-in-the-past-year","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/129170\/south-african-banks-lost-r80-billion-in-the-past-year\/","title":{"rendered":"South African banks lost R80 billion in the past year"},"content":{"rendered":"

The Banker has released its annual ranking of the world’s top 1000 banks, showing how South African banks faced one of the toughest years.<\/p>\n

“Tumbling commodity prices and volatile currency movements all contributed to the generally weak performance of most of the continent\u2019s big hitters in the 2016 ranking,” it said.<\/p>\n

In aggregate terms, the continent\u2019s total Tier 1 capital fell by 12.77%, accompanied by similar hits to both profitability and asset growth.<\/p>\n

South African banking wealth was hit particularly hard, with tier 1 capital dropping by a massive 20% over the past 12 months, from $27 billion in 2015, to $21.6 billion in 2016.<\/p>\n

This amounts to a $5.4 billion loss – or just over R80 billion.<\/p>\n

Three South African lenders, Standard Bank, FirstRand and Nedbank, secured the respective top three positions.<\/p>\n

But a closer look at their performance reveals that all of these banks have suffered in the rankings largely as a result of the depreciating rand.<\/p>\n

Standard Bank\u2019s total Tier 1 capital in the 2016 edition is $7.48\u00a0billion, down from $10.19 billion in the 2015 ranking.<\/p>\n

In the global rankings, Africa\u2019s largest bank has now fallen from 123rd place to 160th.<\/p>\n

Barclays Africa Group, previously known as Absa Group, would have come third in the African rankings but is excluded from the main ranking as it is still a subsidiary of the UK\u2019s Barclays.<\/p>\n

All six South African banks in this year\u2019s Top 1000 World Banks ranking registered a fall in Tier 1 capital. In each case, this decline was by more than 10% year on year.<\/p>\n

These are the biggest banks in South Africa<\/strong><\/p>\n

\n
\n\n\n\n\n\n\n\n\n
SA #<\/th>\nWorld #<\/th>\nBank<\/th>\nTier 1 Capital 2015\u00a0($m)<\/th>\nTier 1 Capital 2016 ($m)<\/th>\nChange (%)<\/th>\n<\/tr>\n
1<\/td>\n160<\/td>\nStandard Bank<\/td>\n10 187<\/td>\n7 475<\/td>\n-26.6%<\/strong><\/td>\n<\/tr>\n
2<\/td>\n172<\/td>\nFirstRand<\/td>\n7 983<\/td>\n7 177<\/td>\n-10.1%<\/strong><\/td>\n<\/tr>\n
3<\/td>\n256<\/td>\nNedbank<\/td>\n4 760<\/td>\n3 864<\/td>\n-18.8%<\/strong><\/td>\n<\/tr>\n
4<\/td>\n386<\/td>\nInvestec<\/td>\n2 518<\/td>\n2 236<\/td>\n-11.2%<\/strong><\/td>\n<\/tr>\n
5<\/td>\n752<\/td>\nCapitec<\/td>\n933<\/td>\n822<\/td>\n-11.9%<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\nSouth Africa<\/strong><\/td>\n27 011<\/strong><\/td>\n21 574<\/strong><\/td>\n-20.1%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Looking globally,\u00a0Chinese banks continued to dominate\u00a0the ranking, but they are showing signs of slowing down, The Banker said.<\/p>\n

Chinese bank\u00a0profits fell 3.5% \u2013 the first\u00a0drop since 2004 \u2013 and bad loans are on the rise, reflecting a weaker Chinese economy.<\/p>\n

Industrial and Commercial Bank of China (ICBC) remains number 1 and China\u00a0Construction Bank number 2, with 4 out of the top 5 places held by Chinese banks.<\/p>\n

US banks did well in the ranking with JP Morgan placing third, Bank of America 6th,\u00a0Citigroup 7th and Wells Fargo 8th.\u00a0French banks remained competitive, growing\u00a0profits by 30% – while both UK and German banks lost\u00a0ground, the report found.<\/p>\n

Notably, UK bank profits fell 22% and HSBC is now the only British bank in the global top 10,\u00a0placing 9th.<\/p>\n

These are the top 10 banks in the world, according to the Banker’s Top 1000 ranking:<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n\n\n
2016<\/th>\n2015<\/th>\nBank<\/th>\nCountry<\/th>\nTier 1 Capital ($m)<\/th>\n<\/tr>\n
1<\/td>\n1<\/td>\nICBC<\/td>\nChina<\/td>\n274 432<\/td>\n<\/tr>\n
2<\/td>\n2<\/td>\nChina Construction Bank<\/td>\nChina<\/td>\n220 007<\/td>\n<\/tr>\n
3<\/td>\n3<\/td>\nJPMorgan Chase<\/td>\nUSA<\/td>\n200 482<\/td>\n<\/tr>\n
4<\/td>\n4<\/td>\nBank of China<\/td>\nChina<\/td>\n198 068<\/td>\n<\/tr>\n
5<\/td>\n6<\/td>\nAgricultural Bank of China<\/td>\nChina<\/td>\n185 607<\/td>\n<\/tr>\n
6<\/td>\n5<\/td>\nBank of America<\/td>\nUSA<\/td>\n180 778<\/td>\n<\/tr>\n
7<\/td>\n7<\/td>\nCitigroup<\/td>\nUSA<\/td>\n176 420<\/td>\n<\/tr>\n
8<\/td>\n8<\/td>\nWells Fargo & Co<\/td>\nUSA<\/td>\n164 584<\/td>\n<\/tr>\n
9<\/td>\n9<\/td>\nHSBC Holdings<\/td>\nUK<\/td>\n153 303<\/td>\n<\/tr>\n
10<\/td>\n10<\/td>\nMitsubishi UFJ<\/td>\nJapan<\/td>\n131 753<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

More on banking<\/h3>\n

Standard Bank computer was hacked in R300 million ATM fraud hit<\/a><\/strong><\/p>\n

Brexit will not lead to recession in South Africa: Reserve Bank governor<\/a><\/strong><\/p>\n

Gupta-owned Oakbay responds to claims it\u2019s buying a bank<\/a><\/strong><\/p>\n

What SA banks say about raising the deposit requirements for home loans<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Banker has released its annual ranking of the world’s top 1000 banks, showing how South African banks faced one of the toughest years.<\/p>\n","protected":false},"author":10,"featured_media":120121,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[26],"class_list":["post-129170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/129170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=129170"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/129170\/revisions"}],"predecessor-version":[{"id":129188,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/129170\/revisions\/129188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/120121"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=129170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=129170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=129170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}