|Absa, South Africa’s dominant player in the mortgage market, added 0,9 percentage points to its market share in the 12 month period ending August, according to Efficient Research. The mortgage market accounts for more than half of the country’s total credit being provided in the economy. |
FNB and Investec also increased their market share over the same period while Standard Bank recorded the largest decline. “The latter,” says Efficient Research, “has been the second largest mortgage provider, but has consistently lost market share since July 2005 when it held 26,5% of the total market compared to its current 25,1%.”
“FNB benefited from this decline by increasing its market share from 16,3% to 17,3% over the same period.”
Absa has entrenched its dominance over the past year or so increasing its market share from 31,4% in July 2005 to 32,3% in August 2006. The current slowdown in the home loan market, according to Efficient Reserch, will make it more difficult to attract new borrowers.