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Johannesburg - South Africa's four largest banks raised banking fees an average 16% - twice the rate of inflation - in the past 12 months.
This is according to the Bank Charges Report, an annual bank fees study commissioned and published by Finweek, a weekly financial magazine.
Clients of Absa, the country's largest retail bank with 11 million users, suffered the worst of the fees increases. It upped fees on the pay as you transact (PAYT) basis by 18%. This is the second consecutive time Absa has topped the fees-increases league.
"Perhaps more ominous is that fact that since our research was first published in 2005 Absa's fees have increased by an astonishing 69% on a PAYT basis and 39% on its package option," said Finweek in its commentary to the bank fees study.
Standard Bank charged its clients 15% more year-on-year on a PAYT basis and an extra 10% for its package option.
First National Bank upped its fees by an inflation-busting 21% on the PAYT and package basis after posting conservative, single-digit increases in previous years.
Nedbank, which charged the highest fees in 2005, had not made inroads into market share despite a concerted effort to reduce its fees, Finweek said.
Its PAYT fees remain 6% below its 2005 levels while package fees are 39% down on the amount charged in that year.
Efforts to simplify bank literature, the way in which they inform clients of fees increases, was mixed by the four banks which control about 90% of the country's banking sector.
"We believe Nedbank and Standard Bank have succeeded most in making their brochure simpler and easier for us to use," said Terence Hatzkilson, a director at Howarth Forensics which compiled the report for Finweek.
The good news is that shareholders of the big four banks will be comforted by their continued pricing power against which the Competition Commission appears helpless.
For the full report, including tables, commentary and details of how on a fees basis banking products compare, subscribers can visit Finweek online, or pick up a copy at your nearest news agency.
- If you're not a Finweek subsriber and would like to subscribe in order to get instant access to this story, please click here.
- Fin24.com