ABOUT THE GBS MUTUAL BANK


The GBS Mutual Bank opened its doors for business as the Grahamstown Building Society in 1877 which makes it one of the oldest banks in South Africa. The Bank has built its reputation and business on a solid foundation of honesty, integrity and an ethos which places value in its clients and staff above all else.


Despite the crippling effects of the small bank collapse in 1999, the bank failures in 2001 and the international banking crisis of the past few years, the GBS has continued to provide its clients with secure investment opportunities and competitive loans, and it strategically maintains a liquidity holding well in excess of the statutory requirements. An important aspect to note is that the Bank is a net investor into the interbank market and it is due to this that when this market tightened in the initial stages of the 2008 banking crisis, the GBS Mutual Bank was well set to navigate through that period of uncertainty.


Part of the strength of the GBS Mutual Bank has been in its conservative approach to its lending activities which are confined to mortgage loans against the security of immovable property, asset based finance, personal loans and loans against the security of investments in the Bank. While many other lending facilities may offer potentially higher returns, the associated risks have weighed against these in light of the size of the Bank and have been avoided.


The GBS Mutual Bank employs the services of Pricewaterhouse Coopers as independent auditors and, as with all banks, is strictly regulated by the Bank Supervision Department of the South African Reserve Bank. In all instances the Bank has been found to comply with the requirements of good governance.


GBS has consistently shown positive growth on the balance sheet over the past 10 years and has assets exceeding R1bn. The Bank continues to show good growth and has a capital adequacy ratio of over 13% (against the required 10%).