During 2003, South African banks remained well capitalised. Although the average risk-weighted capital-adequacy ratio for the sector decreased marginally to 12.2% at the end of 2003, compared with 12.6% in 2002, it remained above the statutory required level of 10%. The average aggregate capital and reserves held by the banking sector in 2003 amounted to R104bn ($16.9bn), up 5.8% from the year before.
Growth in the total balance sheet increased sharply during 2003. Banks’ total funds rose by 25.2% to R1377.6bn. At the end of the year, the four biggest banks – Absa, FirstRand, Nedbank and Standard Bank – held about 81% of the sector’s assets. Foreign bank participation increased from 6.9% in 2002 to 8.7% of total sector assets at the end of 2003.