South Africa’s banking sector posted record gains, with the FTSE/JSE Banks index nearing an all-time high, fueled by a positive macroeconomic outlook following a strategic upgrade from JPMorgan. The rally reflects renewed confidence in local financial stability and growth prospects.
- FTSE/JSE Banks index rose 3.8% on December 11, 2025, approaching an all-time high of 12,947.32
- JPMorgan upgraded South Africa’s macroeconomic outlook, citing improved fiscal discipline and foreign investment
- Bank of South Africa, Standard Bank, and First National Bank led gains, with FNB up 5.1% and ABSA surging 4.3%
- Market capitalization of the banking sector exceeded ZAR 2.4 trillion, a 14% year-to-date increase
- Rising bond yields and improved credit spreads underpinned investor confidence in financials
- Domestic retail investor participation rose 22% in the past month, driven by sector momentum
South Africa’s banking sector is experiencing a historic rally, as the FTSE/JSE Banks index climbed 3.8% in midday trading on December 11, 2025, pushing it within 0.6% of its all-time high of 12,947.32, last recorded in early 2022. The surge follows a positive macroeconomic commentary from JPMorgan, which upgraded its view on South Africa’s economic trajectory, citing improved fiscal discipline, resilient consumer demand, and stronger-than-expected foreign investment inflows over the past quarter.