JOHANNESBURG – A study by PricewaterhouseCoopers (PwC) has shown that a focus on digital strategies helped South Africa’s four major banks to deliver resilient growth, posting combined headline earnings of R42.49 billion for the period ended in June despite a challenging operating environment.
The analysis said the migration of transactional volumes from physical to electronic channels was now firmly entrenched in the banking industry. PwC said all of the major banks, Absa, FirstRand, Nedbank and Standard Bank, have highlighted efforts in relation to digital platforms, while continuing to digitise in-branch experiences.
PwC Africa’s financial services leader, Costa Natsas, said the banks' earnings growth was a result of innovation. “Despite a challenging economic context, the major banks continue to report earnings growth, which remains a testament to the credibility and diversity of their franchises, product sets and management teams,” Natsas said.
The PwC study noted that the major banks remained robustly capitalised, comfortably above regulatory minima across all capital tiers, while generating commendable returns.
The PwC analysis is supported by a Moody’s report that gave a positive outlook for SA banks on Tuesday.