All data is delayed
See More

SA’s most expensive bank

Sep 27 2010 14:19

Company Data


Last traded 160
Change -3
% Change -2
Cumulative volume 602862
Market cap 0

Last Updated: 30-11-2015 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 131
Change -2
% Change -2
Cumulative volume 2954588
Market cap 0

Last Updated: 30-11-2015 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 211
Change -2
% Change -1
Cumulative volume 640517
Market cap 0

Last Updated: 30-11-2015 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Banking question

Johannesburg - Five years ago, Standard Bank was the country’s cheapest bank. It now has the ignominious title of SA’s most expensive bank, the sixth annual Finweek bank charges report has found.
Standard Bank Group [JSE:SBK] has unseated Absa Group [JSE:ASA], which decided to leave its bank charges unchanged in 2010.

Finweek’s review of SA bank charges notes the growing gap between package options and the amount of money forked out by those who pay for each transaction individually as financial institutions seek to drive consumers to their all-inclusive options regardless of their personal requirements.

When considering the shocking jump in some of Absa’s banking costs between 2005 and 2010 for Finweek’s hypothetical family, it’s hardly surprising that the Barclays-controlled group felt obliged to freeze hikes on its retail bank charges.

At 82% the increase in pay-as-you-transact (PAYT) fees since 2005 is the biggest of any of the big four – while the increase in package costs is a negligible 2.5%.

Finweek’s report is based on the calculation of banking costs for a hypothetical South African family and involved “mystery shopper” visits to different branches of retail banks to test the consistency of information supplied.

Probably the most worrying trend in the 2010 report is the rate of increases being imposed on Nedbank clients.

It may cost less to bank at Nedbank Group [JSE:NED] now than it did in 2005 – however the mid-teens rate at which the group increased its fees into 2010 puts that record in jeopardy.

Nedbank is no longer the country’s cheapest bank – the 15% increase on a PAYT basis and the 16% jump on its package deal contributed to First National Bank taking over the top spot.

The 2010 Finweek bank charges report also further demonstrates the desire by banks to drive customers toward using electronic channels.

It’s a strategy some analysts caution will cost banks in the long term as consumers are harder to sell to remotely and as those clients do the same transactions at a lower cost.

It may be beneficial to them but means that financial institutions are obliged to drive ever increasing volumes through their infrastructure to ensure top-line growth, further impacting their ability to serve customers effectively without entering into a vicious circle of ever rising costs and consequential fee increases.

Finweek subscribers can read the full report here.

To subscribe to Finweek, click here.

bank charges



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote