BANKING

This sector comprises the four major banks regarded as systemically important to the financial system, as well as one bank focused on the HNWI market (INL), and two focused on the emerging market lacking traditional stores of collateral (CPI and TCP). 

 INDUSTRY EXPOSURES

Business:  The big four systemically important banks that interact with SARB and National Treasury in order to maintain financial stability, enjoy some protection against anti-trust behaviour, though in a highly regulated environment. Issues dealt with in the report:

  • Macroeconomic trends affecting the banking industry

  • Competition from full-stack, digitised competitors (virtual banks)

  • Significant events related to corporate action

  • External risks

  • Implications of the transition to green energy

  • Pressure to invest in the SA Infrastructure Renewal Programme

Environment: The Climate Change agenda has had a profound impact on the Responsible Investing (and lending) landscape, with scrutiny on fossil-fuel energy financing and pressure to invest in renewable energy projects. 

Society: Customer issues are amongst the highest weighted material issues in the banking industry. These are:

  • Responsible lending and treating customers fairly 

  • Financial inclusion

  • Protection of data and personal information

  • Financial crime and money laundering

  • Cybersecurity

Governance: Despite the relative strength of the SA banking sector, failures internationally have raised scrutiny in the areas of:

  • Responsible stewardship and aligned incentives

  • Capacitated and effective board

  • Reliable accounting 

In this report

  • Standard Bank (SBK)

  • Absa (ABG)

  • FirstRand (FSR)

  • Nedbank (NED)

  • Investec (INL)

  • Capitec (CPI)

  • Transaction Capital (TCP)

Price: $915

Included:

  • Full 35-page report covering all 7 companies in the SA Banking sector

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.