Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 25 2012 19:13
Uncertainty over the future of the euro zone returned to push the rand down against the dollar.
May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a considerable reduction in the local petrol price is anticipated, says governor Gill Marcus.
Johannesburg - Nedbank and Absa have largely increased their market share in terms of loans to the public sector, apparently at the expense of the FirstRand group.
The Reserve Bank's latest DI900 data show that Nedbank has pushed its market share up from 24.3% in September last year to 36.9%. Absa has increased its from 19.9% to 31.9%.
At the same time FirstRand's 46.4% dominant share has shrunk to 18.4%.
Loans to the public sector have much to do with a bank's empowerment profile.
FirstRand announced poorer results in the most recent financial year, exposing large foreign exchange and trading losses at its subsidiary Rand Merchant Bank (RMB).
Meanwhile RMB indicated that it intended increasingly to withdraw from the trading market; it appears that ordinary advances through its merchant bank activities have also received a setback.
FirstRand has a strong empowerment profile in that Sizwe Nxasana will be taking the reins as chief executive at year-end.
But Absa, with Batho Bonke as a shareholder, and Nedbank, which has filled various empowerment positions despite the controversial appointment of Mike Brown as chief executive, do appreciably better when it comes to public finance.
The increase in market share could raise Nedbank's risk profile.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.