South African banking sector shows asset and loan growth in January 2026

The South African banking sector demonstrated robust expansion in January 2026, with total assets increasing by 11.49 percent year-on-year to R8,194 billion.

This growth was mirrored in gross loans and advances, which rose 7.13 percent to R6,251 billion over the same period.

On the liabilities side, total liabilities grew by 9.18 percent to R7,413 billion, while total deposits saw an 8.41 percent increase, reaching R6,790 billion.

The sector's total equity also showed significant strength, climbing 14.52 percent year-on-year to R1,304 billion.

These figures highlight a sustained upward trend across key balance sheet components, reflecting ongoing activity and confidence within the financial system, as published by the South African Reserve Bank (SARB).

The banking sector's prudential health remained strong in January 2026.

Capital adequacy ratios were robust, with total capital adequacy at 17.76 percent, Tier 1 at 15.55 percent, and Common Equity Tier 1 (CET1) at 13.77 percent, underscoring solid capital buffers.

Liquidity metrics also showed resilience, with the Liquidity Coverage Ratio (LCR) at 126.53 percent and the Net Stable Funding Ratio (NSFR) at 117.53 percent, both comfortably exceeding regulatory requirements.

Profitability indicators were healthy, including a return on equity of 15.86 percent and a return on assets of 1.19 percent.

Impaired advances, at R256.99 billion, represented 4.82 percent of gross loans and advances, indicating contained credit risk.