Published in Banking & Financial Services category by MBA Skool Team
African Bank Limited is one of the leading brands in the banking & financial services sector. African Bank Limited SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of African Bank Limited:
The bank provides a variety of services such as credit cards, personal loans, savings and investment schemes, funeral plan etc.
The bank has received the credit ombudsman award for consecutive years
The analyst’s outlook for the bank look positive with the EPS and dividends per share expected to increase over the next two years.
The bank has taken corrective action quickly to address the weak economic scenario.
It is a locally controlled bank by the Reserve Bank of South Africa
Above are the strengths in the SWOT Analysis of African Bank Limited. The strengths of African Bank Limited looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
African Bank Limited Weaknesses
Weak economic outlook can affect the activities of the bank as disposable income gets eroded and investor confidence goes down.
The quality of banks assets have gone down, with non-performing loans increasing which is a concern
The credit impairment charge has been increased last year, reflecting the difficulty that bank is facing in collecting the dues.
These were the weaknesses in the African Bank Limited SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
African Bank Limited Opportunities
Increasing living standards of customers can be seen as a sign of optimistic future.
Demographic dividend – The African population in the age group of 18 to 64 (working class) is increasing, therefore bank can look forward to more customers over the years.
The should introduce loan products which are more suited to current needs of the customers base.
Above we covered the opportunities in African Bank Limited SWOT Analysis. The opportunities for any brand can include prospects of future growth.
African Bank Limited Threats
The bank can face default risk if it fails to meet its obligations towards its customers.
The bank can face risk due to downgrading by credit rating agencies in the future.
The bank can face interest rate risk, due to market interest rates moving in a direction which is unfavourable to the bank.
The threats in the SWOT Analysis of African Bank Limited are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
A bank which aims to be the best place to get loans for all purposes.
African Bank Limited STP
African nationals and corporate and business houses
African home owners and businesses in need of financial services
A bank which offers loans at comfortable terms and rates.
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