SALE OF THE BANK

Mercantile was founded in South Africa in 1965. Over the course of some 52 years, it has seen many changes - in its naming, its structure, and its ownership. Further change is coming.

Mercantile Bank Growth

Over the past few years, Mercantile has achieved outstanding results through the successful implementation of a growth strategy aimed at making it the number one business bank in the country.

To this end, we are very proud to have been rated number one in service for business and commercial banking in South Africa for three years in a row. Further, in a tough environment, for the year ending 31 December 2016, the Bank achieved record results.

Mercantile managed to grow:

  • Net Profit After Tax by 21%,

  • Lending by 20%,

  • Deposits by 26%

  • and, Long Term Funding by 30%

The Bank’s total balance sheet is now at R12.2bn with R2.2bn in capital, which equates to a Capital Adequacy Ratio of 19% - nearly double the amount of capital required by the regulatory authorities. While the planned sale would represent the end of a long-held relationship with our parent company, CGD, we believe it will open the door for new and exciting opportunities. We still have a very strong segment focus on the Portuguese community and this will not change.

Our current strategy, which has been very successful, has been designed in such a way that it does not rely on additional capital funding from CGD and, therefore, as the divestiture process unfolds, management will be able to continue with its strategy implementation. The Mercantile Board of Directors is confident that the Bank will find the right partner to assist it in continuing its growth journey and in becoming the number one business bank in the country.

Should you have any queries in this regard, please correspond with Karl Kumbier.