Grindrod Bank Limited

Image placeholder
Grindrod Bank Limited
  • Grindrod Bank Limited
  • Year : Oct 2019
3 Tokens
USD 300.00

Grindrod considers relationships with its customers as the mainstay of the business, hence providing a wide range of personalised products and services through five key business units (Table 1). While a fair level of diversification is seen in its products and revenue. Lending activities accounted for around 44% of Grindrod’s interest and similar income at FY18, with 47% of the loan book exposed to property. Other significant sources of interest and similar income included interest on bank balances and short-term deposits (23%), and investee companies (12%). The bank also earns fee income mainly from its corporate and retail banking activities.

Additional Information

Grindrod Bank Limited (‘Grindrod’; ’the bank’) is relatively small in size, with a modest market share of approximately 0.2% in South Africa’s oligopolistic banking system. The bank offers a broad range of products and services, although a large amount of its lending is skewed towards property. Positively, revenue stability has been good over the last five years. However, we expect some increasing volatility as the recurring fee and commission earned from the SASSA (South Africa Social Security Agency) has started to diminish.

Related Publication

Standard Bank of South Africa Limited (2010-06)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

South African Financial Institutions Special Report

2020 is shaping up to be an even more challenging year than 2019 and, of course, the exact local and global impact of the COVID-19 pandemic is curr...

Rating Securitisation Transactions Involving Intermediate SPVs

This report explains GCR’s approach to the risks related to each of these SPVs to rate the debt issued by the Issuing SPV. Please note that t...

Available Purchase Options: