Many equity analysts manually copy bank level regulatory data from monthly snapshots into spreadsheets to analyse historical developments in South Africa’s banking sector. EconData and our Banking Dashboard make it possible to update, download and visualise over 300 accounting line items and custom indicators for South African banks with the click of a button.
Today’s post assesses the extent to which new banks have gained market share in South Africa’s banking sector. New bank entrants have gained large numbers of customers in South Africa: Tyme Bank is reported to have gained almost 10 million accounts and Discovery Bank reportedly has over 2 million customers. However, market share gains for these banks have been much more modest when considering bank deposits and credit products. Measured using outstanding balances, Discovery bank has managed to secure almost 4% of the total banking sector household credit card market, but it represents only 1.2% of household deposits. Tyme represents just shy of 0.5% of household deposit assets and less than 0.2% of other loans and advances (which is dominated by personal loans). Capitec has continued to grow its market share since the pandemic. The second chart shows that Capitec’s share of household credit card balances is around 6.5% and almost 10% of household deposits. In these selected products, the biggest slide in market share since the pandemic have been in Nedbank’s household deposits and Standard Bank, Nedbank’s household credit card market shares and ABSA’s share of total banking other loans and advances.
