South African banks are confident of their future value as well as their ability to manage regulatory reform, according to PwC.

Johannes Grosskopf, banking and capital markets leader at PwC said banks consider regulations as the most pertinent issue facing them as Basel 3 are implemented. Grosskopf was speaking at the PwC’s latest banking survey, conducted among 22 CEOs, including the big four banks and Investec, in February and March 2013.

The bank banks are concerned about the regulations which they consider as weighing on their margins.

The banking industry bemoans lack of talent and improving growth as the most important issues the CEO are concerned with.

However, in 2011, talent did not feature in CEOs’ top five concerns.

Despite the “over- banking regulations,” the survey notes that the CEO were well prepared

Grosskopf said: “There has been clarity from the Reserve Bank so the banks say they are very prepared for regulatory change,”

The South Africa banking industry is in good shape, particularly in comparison to international banks.

Business Day (SA) reported that bank executives were optimistic about future profitability, forecasting an average return on equity of 15 percent in the next 12 months and 17 percent in the next three to five years.

A return on equity of about 15 percent was “the new normal” compared to pre-economic crisis levels of over 20 percent, Grosskopf said.

The survey reveals banks would continue to focus on containing costs, which would include a strong emphasis on the use of technology to increase automation.

Grosskopf said was innovation was critical. Meanwhile, each of the four big banks was forecasting to invest to the tune of  $3- 5 million (R3-5 billion) in technology within the next three years.