African Bank, a name synonymous with empowering underserved communities, boasts a rich 50-year history rooted in the pursuit of financial inclusion for all South Africans.
From its audacious founding vision to its current trajectory under the leadership of Group CEO Kennedy G. Bungane, the bank continues to evolve as it transforms into a diversified retail bank.
The bank reported a strong performance for the first half of its 2025 financial year, with net profits after tax up 15% to R202m, strong capital adequacy and an improved credit loss ratio.
As we mark 50 years, we are building a scalable, inclusive bank; laying the groundwork for a future IPO built on shared ownership and purpose
— Kennedy G Bungane, Group CEO of African Bank
“As we mark 50 years, we are building a scalable, inclusive bank; laying the groundwork for a future initial public offering (IPO) built on shared ownership and purpose,” says Bungane.
The original African Bank Ltd was established on July 31 1975, born from a call for a bank for black South Africans.
Founded at a time when the majority of South Africans were denied access to essential financial services, its vision of “a bank for the people, by the people, serving the people” was revolutionary and remains central to its identity today. The first branch opened in Ga-Rankuwa, near Pretoria.
The bank was placed under curatorship in 2014 after facing financial difficulties resulting from poor lending practices. After a successful restructure, a new African Bank Ltd opened its doors on April 4 2016.
Since assuming the helm in 2021, Bungane has been instrumental in positioning African Bank as a powerful force for positive change.
His extensive banking experience, which includes more than 20 years at leading banks, combined with his leadership of the Association of Black Securities and Investment Professionals (Absip), has ensured he is more than equipped to lead the bank with an in-depth understanding of the financial landscape and a passion for societal transformation.
Bungane’s leadership accomplishments have been recognised beyond the bank, earning him a number of prestigious accolades, including the 2024 All Africa Business Leaders Awards’ Business Leader of the Year for his innovative approach to business, the profound impact he has made on the communities African Bank serves and his transformative vision for the organisation.
He was also the recipient of the African Banking Leadership Commendation Award at the African Leadership Magazine Awards in March 2024.
Under Bungane’s leadership, African Bank has undergone a remarkable evolution, driven by a bold growth strategy known as “Excelerate”, which aligns with the core values of financial inclusion to create lasting positive change, a philosophy first instilled by Dr Sam Motsuenyane, the bank’s founding chairman.
A key element of the bank’s growth strategy has been to broaden its offerings, including the establishment of a Business and Commercial division that meets the needs of SA businesses, particularly in the small and medium sized space.
“Smaller businesses have traditionally been neglected when it comes to bespoke offerings that will enable their success and growth,” says Bungane.
Zweli Manyathi, a seasoned financial services specialist with several decades of experience working in the financial services sector, both in SA and the US, was appointed three years ago to establish and build African Bank’s Business and Commercial division.
The establishment of this division has been a key part of the bank’s diversification strategy to broaden African Bank’s offerings beyond unsecured lending while continuing to champion financial inclusion.
As part of its plan to introduce business banking services, African Bank acquired Grindrod Bank for R1.5bn in 2023. The process of integrating Grindrod into African Bank’s business banking platform was successfully completed in 2024.
“That final stage marked a significant step in the process of seeing our business banking vision come to fruition,” says Manyathi. “While our core philosophy remains a bank for the people, by the people and serving the people, we are also committed to supporting entrepreneurs, providing them with banking solutions as well as a comprehensive support network.”
While our core philosophy remains a bank for the people, by the people and serving the people, we are also committed to supporting entrepreneurs, providing them with banking solutions as well as a comprehensive support network
— Zweli Manyathi, CEO: Business and Commercial at African Bank
In 2024, African Bank’s proposed R3.25bn acquisition of Sasfin’s Capital Equipment Finance and commercial property finance loan books was given the green light.
“The Sasfin acquisition enabled African Bank to further sustainably scale and diversify its revenue and client base, while derisking its balance sheet. This is all part of delivering on our ‘Excelerate’ strategy and helping to entrench the bank’s footprint in the business banking market,” says Manyathi
“These acquisitions have been very positive for African Bank, helping to drive customer engagement as well as inclusive and organic growth. Our tailored lending and platform solutions are helping entrepreneurs and SMEs grow. A 49% growth in our business and commercial book is proof that there’s real demand for smart, secured lending that meets the needs of underserved business owners,” says Manyathi.
African Bank has also moved into the secured home lending market after taking over Eskom’s staff home loan book. The power utility offers home loans to its employees, with instalments deducted from their salaries.
“While African Bank’s primary business is unsecured lending, this type of lending is by nature high-risk, potentially leading to high credit impairments. By expanding into commercial, business and property-focused banking, we are successfully diversifying our operations to mitigate the risk of credit impairments,” says Bungane.
The bank’s transition into a customer-centric, digital and data-driven enterprise has involved streamlining customer onboarding, enhancing digital banking solutions and leveraging technology to improve efficiency and security.
These changes have combined to deliver ever-improving financial performance.
CFO Anbann Chetti reveals that net advances are up 20% to R39.1bn, led by 49% growth in the business and commercial divisions.
“Non-interest income grew 38%, reflecting growing uptake of our digital and valued-added service. The bank’s customer base has grown 6% to 6.1-million while credit impairment charges are down 10%, with credit loss ratio improving to 5.3%.
“The bank remains well capitalised, our credit performance has improved and our strategy to diversify revenue and derisk the balance sheet is showing results.
“We’re diversifying deliberately, managing risk responsibly and building a scalable and sustainable business. The strong performance reported for the first half of 2025 was primarily driven by the business and commercial banking divisions, better risk management and digital engagement,” says Chetti.
The results, he adds, show that the bank’s strategy is working, despite a tough economic environment. They also lay a strong foundation for a future listing.
The bank had initially targeted a 2025 listing but delayed the IPO to give itself time to meet the strategic conditions it has set itself, including internal readiness and inclusive ownership structures.
“From the outset we’ve been clear that the IPO is not just a financial event for African Bank, but rather a strategic milestone tied to purpose, inclusion and long-term sustainability,” says Chetti.
“We’ve made good progress but we are prioritising the right foundation, including management alignment, broad-based empowerment and full regulatory readiness before we list.”
The bank plans to continue expanding its core products and services, including the upcoming launch of its Business Banking Account, specifically designed for SMMEs.
Further integration of advanced payment technologies, like those enabled by its renewed seven-year partnership with Visa, will ensure secure, seamless and efficient digital banking solutions. This includes enhancing online transaction security through solutions like Visa’s Consumer Authentication Solution and Tokenization technology.
“Our strategy is firmly premised on creating value for all stakeholders by focusing on economic, social and environmental objectives, aiming for a listable, sustainable bank that positively contributes to society,” says Bungane.
African Bank’s Business and Commercial division shows strong growth
African Bank’s Business and Commercial division has emerged as a major growth engine for the group, reporting robust performance for the six months ended March 31 2025.
Net profit after tax from the division rose to R220m, up from R166m in the prior period, while advances grew by a remarkable 49% year-on-year, reflecting both organic momentum and recent strategic acquisitions.
The results underscore the success of African Bank’s “Excelerate” strategy, which aims to diversify revenue streams, derisk the balance sheet and evolve into an institution that has moved from a monoline entity to a fully-fledged bank servicing both individuals and businesses.
This period marked the full integration of Sasfin’s Capital Equipment Finance business, after last year’s acquisition of Sasfin’s Commercial Property Finance portfolio.
Together, these additions have significantly broadened the division’s secured lending capabilities, a key differentiator in a volatile economic environment.
We’ve focused on adding real value to SA businesses by meeting them where they are, from industrial property developers to township traders
— Anbann Chetti, African Bank’s Group CFO
“These results reflect traction in a purpose-led expansion strategy,” says Anbann Chetti, African Bank’s group CFO. “We’ve focused on adding real value to SA businesses by meeting them where they are, from industrial property developers to township traders.”
The division now serves 23,000 business customers across segments ranging from SMMEs to corporates, with offerings that include property finance, capital equipment funding, SME working capital solutions, and a dedicated trader-focused portfolio.
A new business transactional account, launched in pilot phase in late 2023, is set to roll out nationally in the second half of FY25, enhancing access for underbanked entrepreneurs.
Credit performance was a standout highlight, with the credit loss ratio improving to just 0.4%, down from 1.7% a year ago. This reflects the secured nature of the book, improved risk management and the successful containment of a previously identified exposure in the taxi transport sector.
The cost-to-income ratio improved to a highly competitive 38.7%, even as the division invested in systems, talent and product development. Net interest income reached R236m, and while the net interest margin moderated to 2.8% — a function of the secured asset mix — this was more than offset by revenue growth and strong asset quality.
As African Bank celebrates 50 years of banking for South Africans, its Business and Commercial division is positioning itself as a trusted partner for growth.
With a clear focus on serving the real economy, the division is rapidly scaling into a full-service business bank that can meet the diverse financial needs of SA’s entrepreneurial and commercial landscape.
African Bank’s Personal Banking division expands everyday solutions for customers
African Bank’s Personal Banking division continues to grow, with more South Africans choosing simple, affordable and reliable financial services.
According to the group’s interim results for the six months ending March 31 2025, the number of personal banking customers rose by 28% compared to last year, now reaching 2.4-million active users.
This growth comes at a time when many people are still feeling the pinch in a tough economy. By keeping things affordable and focusing on real needs, African Bank is steadily becoming the preferred choice for everyday banking.
One of the biggest contributors to this success is the MyWORLD account, African Bank’s easy-to-use transactional account that lets families manage money together and is now used by 3.1-million customers. In just six months, customers made more than 47-million transactions, spending R52bn, proof that the service is trusted and frequently used.
African Bank is also expanding beyond traditional banking, offering new products that support people’s lives in practical ways. These include home loan pilots for staff, solar financing for homes and handset financing through mobile providers.
The recently launched Isiko Lifestyle offering is another solution that helps customers put money aside for culturally relevant events like weddings, funerals or coming-of-age ceremonies.
Despite African Bank taking a more cautious approach to lending, offering fewer but more responsible loans, it still provided R4.2bn in personal credit during the period.
Because of tighter credit checks and smarter lending, the bank has improved its ability to manage risk, with a noticeable drop in the number of customers falling behind on payments.
“Our focus is on helping South Africans build financial security,” says Sibongiseni Ngundze, African Bank’s Personal Banking CEO. “We’re growing in the places that matter most — in homes, in communities and in people’s pockets.”
With strong savings growth, responsible lending and innovative new products, African Bank is showing that personal banking can be both caring and clever.
As the bank marks its 50th anniversary, it’s clear that it is building a future that puts people first — just as it always has.
This article was sponsored by African Bank.
