By Omoh Gabriel
Six Nigerian banks have emerged among the top twenty five banks in Africa in the Banker magazine 2017 1000 global banks ranking. They are Zenith, First Bank, Gtbank, Access Bank, United Bank for Africa UBA and Diamond.
Zenith which has a capital of $2.105billion is first in Nigeria 10th in Africa and 430 globally. It is followed by First Bank with $1.422billion tier 1 capital making it the second largest bank in Nigeria, 12th in Africa and 567th in the world. Gtbank followed closely as the third largest bank in Nigeria with capital of $1.329 billion making it the 13th in Africa and 588th in the global ranking. Access Bank followed as fourth in Nigeria, 14th in Africa and 628th in global ranking. UBA according to the bankers rating is fifth in Nigeria, 22nd in Africa and 832 globally. Diamond bank followed closely as the sixth largest bank in Nigeria, 24th in Africa and 881 among the top 1000 banks ranked globally.
The Banker Magazine in its report released in London said “in Nigeria’s Zenith Bank has fallen from seventh place last year to 10th in the 2017 Africa table. This follows a 25 per cent fall in the bank’s Tier 1 capital, largely attributable to the poor performance of the Naira over the review period. Indeed, every Nigerian lender in the 2017 ranking experienced a significant reduction in Tier 1 capital.
“Africa’s leading economies faced adverse conditions over the 2016 review period, as low commodity prices continue to shake the continent’s growth trajectory. Dealing with a shortage of foreign exchange, heightened political risk and volatile currencies, the performances of some regional lenders have suffered. Yet, as the rankings demonstrate, this is not a one-dimensional story. In some cases, African lenders have improved on their positions in the Top 1000 ranking, helped in part by prudent growth strategies and diversified business models.
“South Africa’s Standard Bank Group once again tops the regional table with $8.6 billion in Tier 1 capital. This represents a 15 per cent increase from the 2016 ranking, accompanied by a notable jump in the global table from 160 to 149. Rounding out the top three positions are fellow South African lenders FirstRand and Nedbank, second and third, respectively. FirstRand’s Tier 1 marginally decreased over the review period, dropping by 3.8 per cent. Conversely, Nedbank posted a 24.7 per cent gain.
“Outside the top three banks, which have remained static in the regional table, some notable movements have occurred. Of particular note is National Bank of Egypt’s climb to fifth place with $3.2 billion in Tier 1 capital. This puts the bank at number 301 in the global ranking, up from 366 in the last year’s rankings. Africa’s highest movers table is dominated by lenders from South Africa. In total, four banks make the top 10 in 2017, pointing to the strengthening of the rand in the latter half of the review period as well as the diversified, sophisticated business models over which these banks preside.
“Other notable improvements came from Angola’s Banco Angolano de Investimentos, which posted a 22 per cent increase to its Tier 1 capital. Among the top five banks by return on capital, three Egyptian lenders have risen to the fore. State-owned National Bank of Egypt scoops the top spot with 66.8%. Commercial International Bank (CIB), a private lender, comes in second with 55.9%. In third place is Banque Misr on 53.3%. Rounding out the top five are Angola’s Banco BIC and Nigeria’s United Bank for Africa, with 44% and 42%, respectively.”
