FirstRand has made history by becoming the first South African bank to surpass the R500 billion market capitalization mark, cementing its position as the country’s most valuable lender. The milestone underscores the group’s strong performance and strategic moves in recent years, with rivals Capitec and Standard Bank not far behind.
As of early January 2026, FirstRand—owner of brands such as FNB, WesBank, and Rand Merchant Bank—is valued at approximately R510 billion, ahead of Capitec at R482 billion and Standard Bank at R478 billion.
A resurgent Absa has climbed to a market value of R214 billion, marking a 36% increase over the past six months, the strongest growth among major banks. Investors have responded positively to CEO Kenny Fihla’s turnaround strategy, which emphasizes execution and renewed energy across the group.
By contrast, Nedbank, valued at R127 billion, endured an underwhelming 2025. The bank is now refocusing on growth in South Africa and the Southern African Development Community (SADC) after exiting its ill-fated West African venture through the sale of its minority stake in EcoBank.
FirstRand’s success has been driven by bold strategic decisions under CEO Mary Vilakazi, the only woman leading a major bank in Africa’s most industrialized economy. Over the past two years, the group has strengthened its portfolio through key acquisitions:
- HSBC South Africa: Acquired to enhance corporate and investment banking capabilities.
- Optasia Stake: Invested nearly R5 billion for a 20% stake in the AI-powered fintech multinational. Ratings agency Moody’s described the deal as credit positive, signaling confidence in FirstRand’s digital growth strategy.
South African banks are aggressively investing in fintech to stay competitive:
- Nedbank acquired iKhokha for R1.6 billion in 2025.
- Capitec announced plans to spend up to R400 million to acquire Walletdoc, aiming to make digital payments more affordable and accessible.
FirstRand not only holds the title of South Africa’s most valuable bank but also delivers strong shareholder returns. For the year ended June 2025, the group reported:
- Return on Equity (ROE): 20.2%
- Normalised Earnings: R41.8 billion
- Cost-to-Income Ratio: 50.8%
The group also owns Ashburton Investments and Aldermore in the UK, further diversifying its revenue streams.
Standard Bank, for the year ended December 2024, posted:
- Headline Earnings: R44.5 billion
- ROE: 18.5%
- Cost-to-Income Ratio: 50.5%
- Rest of Africa Contribution: R18 billion in headline earnings, with revenue nearing R60 billion.
Capitec, which focuses on retail banking rather than corporate and investment banking, continues to impress investors with its disciplined strategy. The bank now serves 25 million clients and is expanding into business banking, targeting informal businesses.
Capitec’s share price has surged 150% over the past five years, making it more valuable than Absa, Nedbank, and Investec’s South African operations combined—a feat unimaginable when it entered the market in the early 2000s.
For the year ended February 2025, Capitec reported:
- Headline Earnings: R13.7 billion (up 30%)
- ROE: 29%
- Cost-to-Income Ratio: 41%
Absa’s turnaround strategy under Fihla aims to diversify revenue geographically, with expansion into key African markets. However, its latest results for December 2024 show it still trails rivals:
- Headline Earnings: R22.1 billion
- ROE: 14.8%
- Cost-to-Income Ratio: 53.2%
Nedbank reported:
- Headline Earnings: R16.9 billion
- ROE: 15.8%
- Cost-to-Income Ratio: 55.9%
