African Bank Limited SWOT Analysis

Published in Banking & Financial Services category by MBA Skool Team

Here is a detailed SWOT analysis of African Bank Limited covering strengths, weaknesses, opportunities and threats.

African Bank Limited Strengths

  1.  The bank provides a variety of services such as credit cards, personal loans, savings and investment schemes, funeral plan etc.
  2. The bank has received the credit ombudsman award for consecutive years
  3. The analyst’s outlook for the bank look positive with the EPS and dividends per share expected to increase over the next two years.
  4.  The bank has taken corrective action quickly to address the weak economic scenario.
  5. 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

  1. Weak economic outlook can affect the activities of the bank as disposable income gets eroded and investor confidence goes down.
  2. The quality of banks assets have gone down, with non-performing loans increasing which is a concern
  3. 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

  1. Increasing living standards of customers can be seen as a sign of optimistic future.
  2. 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.
  3.  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

  1. The bank can face default risk if it fails to meet its obligations towards its customers.
  2. The bank can face risk due to downgrading by credit rating agencies in the future.
  3. 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.

Hence this concludes the African Bank Limited SWOT analysis.

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About African Bank Limited

The table below gives the brand overview along with its target market, segmentation, positioning & USP

African Bank Limited Overview
Parent Company

African Bank Investments Limited

Category

Banking and Financial Services

Sector

Banking & Financial Services

Tagline/ Slogan

Credit that works for you

USP

A bank which aims to be the best place to get loans for all purposes.

African Bank Limited STP
Segmentation

African nationals and corporate and business houses

Target Market

African home owners and businesses in need of financial services

Positioning

A bank which offers loans at comfortable terms and rates.


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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