News / National
4 banks quit in South Africa in 2024
09 Dec 2024 at 15:19hrs | Views
BNP Paribas, HSBC, Sasfin Bank, and Bidvest Bank have all announced massive changes to their South African operations in 2024.
French-based BNP Paribas was the first bank of the four to announce changes to its South African operations, with it no longer operating as a bank in South Africa.
The French bank was permitted to conduct business as a bank in South Africa using a branch in 2012, allowing it to offer corporate and investment banking services.
Nevertheless, the group, whose local operations were based in Johannesburg's Melrose Arch, has started scaling back from its non-core operations across Africa to focus on Europe and Asia instead.
In a government gazette signed by Prudential Authority CEO and South African Reserve Bank Deputy Governor Nomfundo Tshazibana, BNP Paribas's ability to conduct the business of a bank via a branch was withdrawn with effect from 8 March 2024.
Although it no longer operates as a bank in South Africa, BNP Paribas is still the owner of credit provider RCS.
HSBC recently announced that it would transfer the business of its branch in South Africa to FirstRand Bank.
The group said the transaction will include the transfer of 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 move to FirstRand as part of the agreement.
The transaction, which should be completed by Q4 2025, is subject to regulatory and governmental approvals.
HSBC also agreed with a deal with Absa to provide HSBC Bank plc's global equities and securities finance clients with continued access to the South African market.
"HSBC's legal entities in the country will be wound down, whilst ensuring all regulatory and customer obligations are met," the group said.
"Following a strategic review, we are pleased to have signed agreements with FNB and Absa. They both have extensive networks and are leading corporate and investment banks in the region. They will continue to provide clients with a broad offering in terms of service and products."
Looking at the local market, the Bidvest Group also announced its plan to dispose of Bidvest Bank and FinGlobal.
The group said that the sale will position Bidvest Bank and FinGlobal for their next growth phase whilst recycling capital for the group.
Management previously said that it was aiming to identify a suitable buyer by the end of the 2024 calendar year.
The group said that it would be looking for a buyer who could ensure business continuity and lessen the impact on the segment's 1,500 employees.
Sasfin has also announced that it will be closing its Business and Commercial Banking (BCB) business in 2025, meaning that the group will no longer have any banking operations in South Africa.
In its delayed financial results for the year ended 30 June 2024 (FY24), Sasfin said that its BCB business suffered increased losses.
Despite the overall group recording a R60 million loss in FY24 on the back of the BCB business's poor performance, it said that its core business, Wealth and Rental Finance, continued to perform well.
It has also sold its Capital Equipment Finance and Commercial Property Finance businesses to African Bank for over R3 billion.
French-based BNP Paribas was the first bank of the four to announce changes to its South African operations, with it no longer operating as a bank in South Africa.
The French bank was permitted to conduct business as a bank in South Africa using a branch in 2012, allowing it to offer corporate and investment banking services.
Nevertheless, the group, whose local operations were based in Johannesburg's Melrose Arch, has started scaling back from its non-core operations across Africa to focus on Europe and Asia instead.
In a government gazette signed by Prudential Authority CEO and South African Reserve Bank Deputy Governor Nomfundo Tshazibana, BNP Paribas's ability to conduct the business of a bank via a branch was withdrawn with effect from 8 March 2024.
Although it no longer operates as a bank in South Africa, BNP Paribas is still the owner of credit provider RCS.
HSBC recently announced that it would transfer the business of its branch in South Africa to FirstRand Bank.
The group said the transaction will include the transfer of 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 move to FirstRand as part of the agreement.
The transaction, which should be completed by Q4 2025, is subject to regulatory and governmental approvals.
"HSBC's legal entities in the country will be wound down, whilst ensuring all regulatory and customer obligations are met," the group said.
"Following a strategic review, we are pleased to have signed agreements with FNB and Absa. They both have extensive networks and are leading corporate and investment banks in the region. They will continue to provide clients with a broad offering in terms of service and products."
Looking at the local market, the Bidvest Group also announced its plan to dispose of Bidvest Bank and FinGlobal.
The group said that the sale will position Bidvest Bank and FinGlobal for their next growth phase whilst recycling capital for the group.
Management previously said that it was aiming to identify a suitable buyer by the end of the 2024 calendar year.
The group said that it would be looking for a buyer who could ensure business continuity and lessen the impact on the segment's 1,500 employees.
Sasfin has also announced that it will be closing its Business and Commercial Banking (BCB) business in 2025, meaning that the group will no longer have any banking operations in South Africa.
In its delayed financial results for the year ended 30 June 2024 (FY24), Sasfin said that its BCB business suffered increased losses.
Despite the overall group recording a R60 million loss in FY24 on the back of the BCB business's poor performance, it said that its core business, Wealth and Rental Finance, continued to perform well.
It has also sold its Capital Equipment Finance and Commercial Property Finance businesses to African Bank for over R3 billion.
Source - businesstech
