- South Africa's four major bank CEOs pocket salaries as high as an average man's annual salary in a single day
- Standard Bank's CEO Sim Tshabalala is leading the list as the most paid of them all, with the bank boasting the most profits as well
- The combined profits of these banks increased by 16.8%, hiking their earnings to R55.8 billion in the first six months of 2023
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SOUTH AFRICA - South Africa's four major banks' chief executive officers make in one day what the average person makes in a year, or even more.
The analysis shows that the combined earning of these four banks rose by a staggering 16.8% to R55.8 billion in the first half of 2023, BUSINESSTECH reported.
A look at the banks' revenue increase
According to BUSINESSTECH, topping the list as the most-paid 'fat cat' is Standard Bank's Sim Tshabalala. Standard Bank’s total income went up 18% to R156.92 billion in 2022, from R132.72 billion in 2021.
Absa boasted revenue up by 15% to R98.9 billion, its net interest income growing by 13% to R60.5 billion and non-interest income rising by 18% to R38.42 billion.
Nedbank’s revenue shows growth as well, reporting a headline increase of 20% to R14 billion, while FirstRand's growth in headline earnings increased by 12% to R36.7 billion, and its net asset value increased 10% to R180.7 billion.
The report noted that profits can be attributed to balance sheet growth, higher interest rates and the success from the digitisation of their services.
SA salaries increasing at a snail's pace
In a previous report by Briefly News, salaries earned by South Africans range anywhere between R7 880 and R139 000 a month, with the figure for middle-class income earners sitting at R29 900.
The rate at which these salaries increase is slow. Employees with two years of employment at one company typically pocket 32% more than new hires, while those with five or more years at a company earn about 36% more than those with less experience.
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Source: Briefly News