Investment banking in South Africa is still below par unlike in the USA, Asia, and the UK where it is highly established. Although South Africa is not comparable to the US, Asia, and Europe, it still has a wide range of banking institutions. These include Cooperative banks, locally controlled banks, mutual banks, private banks, international banks, and foreign banks. Their efficient operations are slowly transforming the banking system in South Africa, helping in the growth of the investment banking market.
Best South African Investment Banks
Which bank is best for investment in South Africa? Consider the following investment banks in South Africa.
1. Absa Bank Limited
Absa is a subsidiary of Barclays Africa Group Limited and its headquarters are in Johannesburg. It is one of the leading investment banks in South Africa. It offers various banking products and services including personal and business banking, credit cards, cash management, international banking, investor services, trade finance and working capital, capital markets, advisory services, digital channels, and financing. Absa bank employs about 27, 000 staff and in 2020, it had a net income of 2.07 billion ZAR.
2. Standard Bank Group South Africa
The Standard Bank of South Africa is the largest African banking group that operates through Personal and Business Banking, Corporate and Investment Banking, and Liberty Holdings Limited. It is one of the best investment banks in South Africa. It offers a wide range of services such as transactional banking services, borrowing and lending, saving, insurance services, risk management, advisory services, and wealth management.
The investment bank services offered include advisory, debt products, structured trade and commodity finance, debt capital markets and capital markets. It serves about 8.1 million customers and oversees around 1, 221 branches in the country. The Standard Bank Group is also the top-earning bank with a total income of about 100 million ZAR. It also has the highest number of employees.
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3. Investec Bank
Investec Bank offers both banking and wealth management services in South Africa. It offers services to private bank accounts, fixed deposit accounts, private business accounts, instant access accounts, and flexible notice accounts. Investec’s services include investment banking, financing and lending services such as motor vehicle finance, asset finance, personal loans, property development finance, corporate lending, and more.
4. Mercantile Bank
Mercantile is another one of the best investment banks in South Africa headquartered in Sandton. It is a subsidiary of Mercantile Bank Holdings Limited and it offers a wide range of international and local banking services to clients. Its main activities are business, commercial, and alliance banking. Its main office in Sandton provides individual banking services, corporate banking, retail banking, asset management, brokerage services, and more.
5. Sasfin Holdings Limited
Sasfin Holdings Limited has its headquarters located in Johannesburg. It is one of the best banks to invest your money in South Africa for its business banking and private client financial services. Sasfin Holdings Limited offers services across several divisions including wealth, business, commercial solutions, transaction and treasury, and corporate services.
6. Grindrod Bank
Grindrod Limited is another best investment bank in South Africa that offers financial services to private, corporate, and institutional clients. Its headquarters are in Durban, South Africa and it offers investment services to potential investors. Grindrod bank also has an interest in asset management services, property finance, and retail services.
7. African Bank Limited
The African Bank Limited has its headquarters in Midrand, South Africa. It is one of the best investment banks in South Africa offering financial services and products to its clients. To ensure the effectiveness of its operations, the African Bank Limited carries out its activities through a strong and efficient distribution network in addition to digital and direct marketing and sales and service channels.
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8. Capitec Bank Limited
Capitec Bank is a subsidiary of Capitec Bank Holdings Ltd and is headquartered in Stellenbosch. The bank provides a wide range of services such as mobile banking, money transfers, card machines, workplace banking, financial education, and salary transfers. Capitec bank manages 857 branches and 6,725 ATMs across South Africa. In Feb 2021, Capitec’s net income was 4.57 billion ZAR.
Nedbank is based out of Johannesburg and is a subsidiary of Nedbank Group Ltd. It offers a wide range of banking services such as foreign currency accounts, payments and receipts, electronic banking, trade finance, guarantees, treasury services, and documentary credits and collections. Other services include cash management, custodial services, and merchant payment and support services. Nedbank manages 786 outlets and employs around 28, 600 staff. In 2020, the bank’s net income was 3.47 billion ZAR.
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10. First Rand Bank
The First Rand Bank is headquartered in Sandton and is a subsidiary of FirstRand Limited. It offers a wide range of retail, corporate, commercial, and investment banking products and services. FirstRand Bank operates through three individual banks in South Africa: Rand Merchant Bank, First National Bank, and WesBank.
11. Bidvest Bank Limited
Bidvest Bank is a subsidiary of Bidvest Group Limited operating with a locally-controlled bank license issued by the Reserve Bank of South Africa. It specializes in foreign exchange and also offers retail banking, vehicle insurance, and financing.
Summary of Top Investment Banks in South Africa
South Africa is a fast-growing economy with investment banking slowly but steadily picking pace. Its well-organized banking system helps in the ease of doing business. The availability of efficient banking channels will keep attracting both local and foreign investors. You can use the above South African investment banks to invest. If you are looking for best banks to invest your money in South Africa, consider the ones above.