Africa's top lenders from 2016.

 
 
 
 
 
 

Algeria, Citibank Algeria

Recent years have not been kind to Algeria. In these leaner times of slumping commodity prices and cooling economic growth, the development of the country’s non-oil private sector has been stymied by a challenging regulatory environment, a lack of foreign investment and volatile currency movements. Algeria’s banks have also struggled as a result of capricious changes to financial sector regulation and tightening liquidity on the interbank market. 

But this year’s winner of the country award, Citibank Algeria, has mitigated many of these challenges by prioritising service and product innovation to meet its customers’ needs. This includes the inauguration of Citidirect BE Mobile – the mobile version of the bank’s e-payments platform, Citidirect, which allows clients to access the service from their smartphones. 

“The regulatory and business environments have undergone significant change over the past 12 months, in part due to lower oil prices, and adapting to these changes while maintaining customer focus and service quality has been our main challenge,” says Ramz Hamzaoui, chief executive of Citibank Algeria. 

In addition, the introduction of non-deliverable forwards, which enable clients to hedge offshore against currency fluctuations, has been accompanied by the launch of Citi FX Pulse, an online platform that permits the automation of foreign exchange deals.  

Citibank Algeria has also worked hard to develop several special initiatives to keep clients up to date with key domestic and regional developments. These include client-specific economic phone updates with the bank’s senior commodity analyst and senior economist for Africa. 

“In an increasingly competitive environment, we have been able to strengthen our operations in order to remain among the best quality service providers, which has allowed us to gain market share at a time when the market as a whole is shrinking,” says Mr Hamzaoui. 

Angola, Banco de Fomento Angola

Angola’s fortunes have declined in recent years as slumping oil prices have hit the performance of the all-important extractive sector and the industries that rely on it. With the need for extensive structural reform on the cards, the cooling economy is unlikely to deliver the kind of growth needed to support the robust performance enjoyed by Angola’s banks during the boom years. 

As many lenders suffer, and the prospect of consolidation among the country’s smaller banks increases, only the most prudent institutions are emerging unscathed. This year’s winner, Banco de Fomento Angola (BFA), has once again scooped the award based on its stellar financial performance and its commitment to innovation and customer service. 

In local currency terms, BFA increased its assets between 2014 and 2015 by 14.6%, while net profits surged by 19.1% over the same period. Meanwhile, the bank’s cost-to-income ratio fell from 36.3% in 2014 to 35.9% in 2015. Nevertheless, the challenging environment has weighed on BFA’s non-performing loans ratio, which hit 4.6% in 2015, up from 3.3% in the previous year. 

Beyond the numbers, the bank’s commitment to investing in its information systems to drive technological innovation was widely commended by the judges. The eMudar@BFA project, an automation initiative that structures and spans all of the bank’s activities, saw a number of new functionalities introduced in 2015. Front-end applications in BFA’s branches, corporate centres and investment centres now employ standardised work flow methodologies for processing their activities, lowering costs and increasing operational efficiencies. 

Meanwhile, BFA’s physical and digital footprint continues to grow. The bank opened five new branches in 2015, while 17,000 customers have downloaded its mobile app. In the same period, its online HomeBanking service boasted 570,000 users, up more than 12% on 2014. 

Benin, Bank of Africa Benin

In contrast with many of its regional peers, Benin has weathered the cooling global economic climate relatively well. With gross domestic product growth hovering close to 5% for the past four years, low levels of government debt and ambitious medium-term public investment plans in place, the country’s economy is in good shape. It is little surprise then that the winner of this year’s country award, Bank of Africa Benin, recorded admirable growth in 2015.

In local currency terms the bank’s net profits increased by about 5% in 2015, while its assets and Tier 1 capital grew by 10% and 12%, respectively. In support of this performance, the bank has introduced several customer-centric initiatives designed to improve its service and offerings in the market. 

Its pricing ‘Task Force’ conducts market research and analysis on bank market pricing to set competitive but profitable rates. Similarly, its ‘Customer First’ programme is dedicated to improving client-facing staff training and development, as well as to developing tailored products and to improving the bank’s overall risk and cost management. 

“[The launch of our] Customer First programme is associated with our major ambitions: to develop and train our sales team; to re-engineer products with a competitive pricing; to develop a personal tailor-made customer relations with clients to improve customer retention and loyalty; and to enhance risk and cost management,” says Faustin Amoussou, managing director of the Bank of Africa.

To increase customer access to its services, Bank of Africa has partnered with two mobile network operators to offer mobile banking services, including peer-to-peer transfers. It has also developed an internet banking service, BWEB, to offer additional real time transactions to its clients. 

Botswana, Stanbic Bank Botswana

Weak demand for global commodities hit Botswana’s mining-dependent economy hard in 2015. The closure of several diamond mines, combined with lower output from the facilities that remained online, contributed to a 0.3% contraction in gross domestic product growth for the year. 

This marked the first year in which the economy had shrunk since the 2009 global financial crisis. The knock-on effects for the wider economy were similarly negative, with slumping business confidence hitting the performance of Botswana’s banks and other financial services entities. 

Despite these, and other, headwinds, Stanbic Bank Botswana emerged as this year’s country award winner of the back of impressive financial results and its commitment to technological innovation. In local currency terms, the bank’s net profits jumped 44% in 2015, though a poor performance in 2014 goes some way to explaining this. Meanwhile, total assets and Tier 1 capital grew by a rosy 10% and 14.3% in the same period. 

Over the past year, the bank has implemented an integrated till solution to key merchants across Botswana. This process combines the point-of-sale device with the merchant’s till, simplifying reconciliation for the merchant and enabling more efficient processing of transactions. 

In addition, the launch of Stanbic Bank’s mobile branch in March 2016, which is equipped with an ATM, two customer-serving points and full internet and phone connectivity through a satellite connection, provides customers in remote areas access to full banking services.  

Stanbic Bank Botswana continues to play an important role in supporting the country’s small and medium-sized enterprises. Served under its enterprise banking division, these businesses are offered direct relationship management services or a designated one-stop shop for phone and email-based exchanges, depending on the size of the client. 

Burkina Faso, Ecobank Burkina Faso

Burkina Faso’s economic trajectory took a hit in 2015 as rising political uncertainty, including an attempted coup, was compounded by growing insecurity. Between 2013 and 2015, gross domestic product growth slowed from 6.6% to 4% as local businesses felt the impact of this more difficult political and economic environment. The banking sector has not been immune from these difficulties, with most lenders experiencing declines in some of their key performance indicators in 2015. 

Yet the winner of this year’s country award, Ecobank Burkina Faso, has mostly bucked this trend, despite taking a hit to its net profits after a period of solid growth. In local currency terms, total assets increased year on year by 16% in 2015, while Tier 1 capital grew by 4.1%. But as a sign of the bank’s more testing circumstances, both its cost-to-income and non-performing loan ratios increased over the review period.

Nevertheless, the judges were impressed with the rollout of new projects designed to attract new customers and to improve the experience of existing clients. In 2015, Ecobank Burkina Faso completed its branch renovation programme to bring all of its facilities in the country in line with the standards of the wider Ecobank group. The bank also organised training to improve management and leadership skills of unit heads within the organisation. 

Ecobank Burkina Faso has been investing in its alternative distribution channels, including ATMs, prepaid cards and mobile money offerings. In 2015, the bank expanded its ATM network to reduce the distance between points of services for customers. 

Burundi, Ecobank Burundi 

Political instability, rising inflation, a foreign currency liquidity crunch and deteriorating business confidence all negatively impacted Burundi’s banking sector in 2015. With gross domestic product growth contracting by 2.5% for the year, most banks looked to alternative revenue streams and cautious lending strategies to navigate these difficulties.

Ecobank Burundi, which has won this year’s country award, impressed the judges with its commitment to digital innovation, excellent risk management strategies and strong financial performance. 

With Tier 1 capital increasing by 18% and net profits surging by 14% in 2015, the bank was also able to boost its return on equity to 23%, up from 22% in 2014. Meanwhile, its cost-to-income ratio fell to 67% from 70% and its non-performing loan ratio fell to 2.7% from 3.1% year on year in 2015. 

A focus on digital and technological innovation has ensured the bank remains the market leader in terms of its alternative banking channels. The rollout of internet banking options for its retail customers and its Omni online portal for corporate clients have distinguished Ecobank in the market. It is also boasts the largest number of ATMs in the country, with 34. 

Ecobank Burundi has also prioritised its position in the market for small and medium-sized enterprises in recent years. To that end, the bank has introduced a wide range of products tailored to medium-sized enterprises and offers complementary service support and a number of fee-based products. 

The bank also provides medium-sized enterprises with dedicated relationship managers in each branch, and its recently concluded partnership with the International Finance Corporation is expected to result in further medium-sized enterprise focused initiatives in future. 

Cameroon, United Bank for Africa Cameroon 

Cameroon’s economic fortunes have been more favourable than many of its regional partners in recent years. Gross domestic product growth hit 5.8% in 2015, partly helped by the commencement of the government’s ambitious infrastructure development plans and efforts to stimulate the country’s forestry and agriculture sectors. And the performance of this year’s country award winner, United Bank for Africa (UBA) Cameroon, is a good indicator of this healthy economic climate. 

The bank registered total asset growth of 17% in local currency terms in 2015, backed by a 1.6% increase to its net profits. UBA Cameroon has also been quick to comply with regulations requiring banks to a provision of 2% for all outstanding loans while improving its risk profile to reduce the prospect for defaults. Non-performing loans stood at 1.75% in 2015, a marginal increase on the 1.13% recorded in 2014.  

Beyond its strong financial performance, UBA Cameroon has worked hard to tailor specific banking solutions for both its customers and partners. As part of its E-Wallet project with the country’s national electricity provider, Eneo, the bank provided corporate co-branded Visa cards to the company’s staff. 

“The competitive advantage of our robust, secured and trusted digital banking platform and products contributed to more than 120,000 Visa prepaid card sales and over 25,000 subscriptions of SMS/e-alerts,” says Udom Isong, managing director of UBA Cameroon. 

UBA Cameroon has also been proactively expanding its physical and digital distribution channels. The bank has recently expanded its branch network in the south-west of the country and plans to increase its footprint in the north. Its internet banking service, U-Direct, caters to both retail and corporate clients while the recent launch of a mobile banking service has also increased its offerings to new and existing customers. 

Chad, United Bank for Africa Chad

For the second consecutive year, United Bank for Africa (UBA) Chad has scooped the country award for Chad for a solid financial performance and the implementation of an impressive digital banking strategy. In 2015, Tier 1 capital grew by 23% after an increase of 13% in 2014, while return on equity increased to 11% from 10% over the same period. Nevertheless, after massive gains to total assets and net profits in 2014, the bank registered very marginal declines in both of these categories in 2015. 

“Through the challenges of declining oil revenues and regional security threats which plagued the local economy, UBA Chad has steadily focused on optimising existing efficiencies and sound risk management to develop small and medium scale businesses, and expand the e-banking space significantly,” says Aliyu Salami, managing director of UBA Chad. 

As the country’s newest bank, UBA Chad has been taking steps to elevate its role in the economy. Investments of more than $6.8m in government securities have gone hand in hand with $8.5m in lending to the government, while the bank has also provided about $17m in financing to Coton Chad (a cotton company) and national electricity company SNE. 

In addition, the bank has engaged in cross-border lending to a number of regional oil companies and other groups. Cumulatively, this has assured the bank’s earning base while offsetting some income losses related to Chad’s challenging foreign exchange market. 

The bank’s peerless digital offerings contributed to substantial customer growth from 28,000 in 2015 to 35,000 in the last few months of 2016. This has been achieved through the successful roll out of e-banking offerings, including e-alerts, SMS alerts and internet banking for both retail and corporate clients.  

Democratic Republic of Congo, Rawbank

Though the Democratic Republic of the Congo’s (DRC’s) boom days may be over, the country is still registering economic growth rates well above regional norms. Between 2010 and 2015, annual gross domestic product growth averaged 7.7%. 

But falling commodity prices have since taken their toll and growth is expected to be 4.2% in 2016, down from 9.5% in 2014. The banking sector has nevertheless remained in good shape. With 18 lenders competing in a market where banking sector penetration represents about 5% of the population, the long-term prizes are substantial.

The winner of this year’s country award, Rawbank, is also the country’s largest lender by total assets. Tier 1 capital was up 18% in 2015, while both total assets and net profits increased by 15% and 55%, respectively. Meanwhile, the bank’s ratio of non-performing loans decreased from 3.2% in 2014 to 2.5% in 2015, just as its cost-to-income ratio fell from 73.5% to 68.9% over the same period. 

“In a context of uncertainty both from the economic and political view, our bank has continued to expatiate our network. In 2015, Rawbank posted a balance sheet total of $1.09bn. The symbolic $1bn threshold has been passed. This is a first in the banking industry of DRC,” says Thierry Taeymans, chief executive of Rawbank. 

To cater to small and medium-sized enterprises (SMEs), which Rawbank considers a key driver of the economy, the bank has established a dedicated SME agency known as Agence Victoire. Dedicated and specialist staff will give clients training and assistance on financial statements, with a focus on cashflow.

Djibouti, CAC International Bank 

On the face of it, Djibouti’s economic prospects appear to be relatively bright. Gross domestic product growth has been on the rise, increasing from about 5% in 2013 to an anticipated 6.5% in 2016. This is has been supported by a major public and private sector investment boom, during which several massive port-focused capital projects have begun in the capital, Djibouti City. But the country remains poor – about 23% of the population lives in extreme poverty – while questions of regional political stability and an opaque domestic business environment also weigh heavily on the economy. 

For Djibouti’s banking sector, this has required most lenders to navigate the commercial landscape with care. Sector-wide non-performing loans stood at 22% in June 2015, according to the World Bank. But CAC International Bank, this year’s winner of the country award, demonstrated an effective risk management strategy coupled with solid digital banking offerings to impress the judges. 

Between 2013 and 2015, the bank’s cost-to-income ratio fell from 81% to 64%. Its ratio of non-performing loans climbed only marginally over the same period, from 2.4% to 3%, despite a much higher sector average. Meanwhile, in 2015 total assets grew by 36% year on year, off the back of an increase of 42% in 2014. But in line with some of the trials facing the sector as a whole, net profits and return on equity fell in 2015. 

CAC International Bank’s internet and mobile banking services allow customers to view account balances and transactions, pay bills, transfer funds between CAC accounts and external accounts as well as conduct international transfers. Besides this, the introduction of a reward system for clients, which includes merchandise and prizes, has been a key component in CAC International’s efforts to build up and maintain good customer relations. 

Egypt, Commercial International Bank

Egypt’s Commercial International Bank (CIB) has thrived despite the political and economic uncertainty in the country in recent years. This performance has largely been driven by the bank’s exceptional focus on sustainable growth, executed under a prudent long-term vision that focuses on the role CIB can play in supporting the wider economy. 

In 2015, the bank recorded an increase to its net profits of 26%, up from 25% in 2014. Similarly, assets grew by 25% in 2015 while Tier 1 capital increased by 9% over the same period. 

Meanwhile, CIB’s return on equity (ROE) continued its impressive forward march. In 2013, its ROE was 29.5% and by 2015 that figure had reached 33.4%. In tandem, its cost-to-income ratio has declined from 23.5% to 20.4% over the same period. 

Beyond the numbers, CIB has grown through both organic and inorganic measures. In November 2015, it finalised a deal to acquire the retail portfolio of Citibank in Egypt. This included about $135m in assets, $190m in deposits, 100,000 customer accounts and more than 800 full-time consumer banking contract employees. The deal also incorporated eight Citibank branches and 21 ATMs. 

CIB has continued to focus on its digital service offerings and processes through improvements to its operations and IT group in 2015. The bank has now automated all custody operations while increasing rates of straight-through processing. 

“Despite the significant challenges, our success revolved around technology, both to maximise operational efficiency and address customers’ needs. Digital banking is a top priority and this year we pioneered two products, the Smart Wallet and the soft launch of Mobile Banking, that deliver secure, cost-effective and convenient financial services through mobile phones,” says Hisham Ezz Al-Arab, CIB’s chairman and managing director.

Gabon, United Bank for Africa Gabon

Long dependent on hydrocarbons to support economic growth, Gabon’s government is now pushing hard to achieve greater diversification. Under its so-called ‘Strategic Plan for an Emerging Gabon’, a new emphasis is being placed on industrialisation to ensure the domestic processing of local resources and the promotion of foreign direct investment. 

For the country’s banking sector, opportunities for growth are on the rise as the economy slowly diversifies and various investment initiatives, including a number of public-private partnerships, begin to gain traction.

United Bank for Africa (UBA) Gabon, the winner of this year’s country award, clinched the top spot after impressing the judges on its efforts to better serve its customers through digital banking programmes, as well as its focus on the country’s burgeoning small and medium-sized enterprise market. In local currency terms, UBA Gabon’s Tier 1 capital increased by 18% in 2015, after a 34% increase in 2014. Meanwhile, total assets grew by 1% while net profits registered a substantial decline after surging upwards over the previous two years. 

The bank has also introduced some unique products and services to distinguish itself in a competitive market. The UBA prepaid card, known as UBA Africard, has been particularly popular and is used by customers for travel as well as to facilitate remittances. The bank has been deploying its own point-of-sale (POS) infrastructure to merchants across the country and is the only lender with MasterCard-capable POS. 

Chioma Mang, managing director of UBA Gabon, says: “Our success [in 2015] was largely predicated on our ability to leverage technology to better serve our customers. We essentially revolutionised digital banking in the country, providing first-class channels through our internet platform, prepaid cards and POS terminals. This has helped drive financial inclusion of the unbanked in the country.”

Gambia, Trust Bank 

The winner of this year’s country award for Gambia, Trust Bank, enjoyed considerable success in 2015. Its Tier 1 capital increased by 54% in local currency terms, while total assets grew by 5% over the same period. Net profits declined modestly by 5% following double-digit growth over the previous two years. More impressively, Trust Bank re-engineered its IT platform to fully integrate an updated version of the Flexcube core banking system. 

The upgrade will enhance banking operations across the full spectrum of Trust Bank’s offerings, while also improving ATM functioning, SMS banking and internet banking. Since the installation of the new Flexcube platform, the bank has registered a healthy uptick on non-funded income, a trend that is expected to continue. 

Moreover, the new platform has enabled the introduction of the Workflow system, which enhances customer relationship management by holistically identifying customer needs. 

Beyond its IT offering, the bank has increased its stake in the share capital of the country’s only mortgage financing company, Home Finance Company. The purchase of an additional 50% stake increases Trust Bank’s total position to 60% and fits with the bank’s longer term strategy of gaining greater exposure to property development and long-term mortgage financing. 

To support Gambia’s growing number of small and medium-sized enterprises Trust Bank has partnered with the International Fund for Agricultural Development to support local producers along the rice and vegetable value chain, a partnership specifically geared towards women and young people. 

“Looking ahead, our aim is to target and reach out to the unbanked segment of the population, which arguably represents about 80% of the population,” says Ibrahima Salla, acting managing director of Trust Bank. 

Ghana, Fidelity Bank

In a highly competitive banking sector Fidelity Bank has emerged as the standout entrant for the Ghana country award. Sound portfolio management, a commitment to innovation and an excellent financial performance all contributed to the judging panel’s decision. 

In local currency terms, Fidelity Bank’s Tier 1 capital increased by 31% in 2015 while its total assets and net profits grew by 36% and 83%, respectively. Similarly, return on equity hit 33% in 2015, up from 31% in the previous year, while its cost-to-income ratio fell to 53%, from 56% in 2014.

To better tackle non-performing loans (NPLs), Fidelity Bank established a dedicated recoveries unit, while its strategy of booking only the highest quality assets has led to the lender’s loan book dramatically outperforming the sector average. In 2015, the industry NPL ratio was 15% against Fidelity Bank’s 2.27%. 

In 2015, Fidelity Bank completed the acquisition of ProCredit Savings and Loans. The deal has bolstered Fidelity Bank’s position in the small and medium-sized enterprise (SME) market, in which ProCredit was a focus, while growing the bank’s footprint by a further 75 branches, 109 ATMs and a further 693,000 customers. 

Fidelity Bank also launched a partnership with IBM to manage the bank’s technology infrastructure, which improved standards of service delivery and consolidated its position in the market. 

The bank’s SME Business Academy also impressed the judges. Acting in a capacity-building function, the academy helps SMEs to develop a sound governance culture, unlock growth opportunities and make these entities more bankable over the long term. Experts specialised in different industries train the businesses listed in the academy. 

Guinea, Ecobank Guinea

Guinea is posting a slow recovery from the twin shocks of collapsing commodity prices and the Ebola virus outbreak of 2014 and 2015, respectively. Gross domestic product growth, which effectively stalled in 2015, is expected to begin a quick recovery in the coming years as bauxite and gold production normalises and the agricultural sector continues its positive trajectory. 

For the banking sector, this is good news. Tougher regulations and steeper competition have compounded many of these problems in recent years. But this year’s winner of the country award, Ecobank Guinea, has managed to overcome many of them. 

With its assets and Tier 1 capital increasing by 7.7% and 7.3%, respectively, in 2015, the bank remains in good shape. But an indication of the tougher environment was the bank’s ratio of non-performing loans, which increased slightly to 5.73% from 5.71% in 2014.

To counter this, Ecobank Guinea has looked to deposit mobilisation through the development of electronic products; pushed the recovery of unpaid loans; adopted a more risk-sensitive approach to new business; and provided its existing customer base with new value-added products. 

To better serve its customers, the bank has increased its digital and physical footprint in recent years, with a total of 21 branches split between eight in the capital city and 13 across the rest of the country. In addition, 37 ATMs across Guinea are supported by 43 electronic payment terminals used in Ecobank branches and by key merchants. 

Ecobank Guinea also provides internet banking to retail and corporate customers, as well as mobile banking in partnership with telecommunications companies.

Guinea-Bissau, Ecobank Guinea-Bissau

Ecobank Guinea-Bissau’s strong performance in 2015, coupled with investments in innovative electronic banking channels, ensured that it landed the latest country award. This comes despite the demanding climate facing Guinea-Bissau’s banking sector, including political instability and a tougher regulatory regime. In local currency terms, Ecobank’s assets grew by 29% in 2015 while net profits surged by 136% off the back of a disappointing couple of years in 2013 and 2014. 

Similarly, the bank’s return on equity increased to 10% in 2015, up from 5% in the previous year. Its cost-to-income ratio fell over the same period, from 89% to 78%, as did its ratio of non-performing loans, which declined to 3.9% from 4%. 

To develop its physical footprint nationally, Ecobank Guinea-Bissau has increased its branch network from three to six locations, and installed 19 ATMs in the cities in which it is present. In addition, the successful rollout of internet and mobile banking services means customers can now perform important banking functions remotely. 

Ecobank Guinea-Bissau plays a notable role in supporting public infrastructure development, including the country’s spending on new road networks. It also supports the payment of government wages and assists the authorities in revenue collection of taxes and fines. 

The bank is also playing an important role in developing and supporting Guinea-Bissau’s private sector. This includes financing the booming energy and telecommunication sectors as well as supporting small and medium-sized enterprises. Given that much of the country’s economy remains essentially informal, this work is important. In an effort to drive formalisation, Ecobank Guinea-Bissau periodically identifies unbanked businesses to provide them with structured finance. 

Kenya, Equity Bank

Kenya’s Equity Bank enjoyed another strong year in 2015. Its Tier 1 capital and total assets grew by 20% and 24%, respectively, in local currency terms, while return on equity surged to 37.1% from 29.8% in 2014. Over the same period, the ratio of non-performing loans fell from 3.8% to 2.9%. Meanwhile, the cost-to-income ratio fell by one percentage point to 47%. 

This stellar performance has come as Equity Bank looks to diversify its business model away from core banking in order to mitigate the impact of stiff competition and onerous regulation.

To this end, the bank has aggressively pursued agency banking, whereby it partners with private businesses to reach remote parts of Kenya. The approach has been highly successful, increasing the bank’s customer and deposit base while addressing issues of financial inclusion. As the business is conducted on a variable cost basis, Equity Bank incurs a cost per transaction without the fixed costs associated with branch-based banking. 

In September 2015, the bank’s holding company, Equity Group Holdings Limited, acquired a 79% stake in ProCredit Bank Congo, which at the time had an asset base of $228.4m, a loan book of $132.67m, customer deposits of $185.5m, and shareholder equity valued at $29m.

Equity Bank also launched Equitel, a mobile network virtual operator, to enhance its digital offerings. Equitel provides the bank’s 10 million customers with a secure and effective digital banking channel without the additional charges linked to partnerships with independent telecommunications groups. More than 1.8 million customers have subscribed to Equitel since launch, with about Ks14.1bn ($138.5m)-worth of loans disbursed through the service.

Malawi, Standard Bank

After recording strong economic growth of about 5.7% in 2014, Malawi’s fortunes took a turn for the worse in 2015 as adverse weather conditions, including the impact of the El Niño phenomenon, and macroeconomic instability cut gross domestic product growth to just 2.8%. 

Meanwhile, mismanagement of the public purse in recent years has led to large fiscal deficits and growing debt servicing costs, just as the country needs substantial public investment. These conditions, together with high inflation, have been less than ideal for Malawi’s banking sector.

However, Standard Bank Malawi, the winner of this year’s country award, has performed particularly well despite these conditions. The bank’s Tier 1 capital increased by 30% while total assets grew by 20% in 2015. Meanwhile, net profits jumped by 9% over the same period. Nevertheless, the bank did not escape the harsher operating environment completely unscathed, with its return on equity decreasing and cost-to-income ratio increasing. 

“Despite the tough macroeconomic conditions, we have continued to grow our market share in the key sectors of the economy. Standard Bank has remained resilient in spite of high interest rates and inflation in Malawi. Our brand equity and recognition has increased significantly due to our corporate social responsibility and wellness programme,” says Andrew Mashanda, chief executive of Standard Bank Malawi. 

To cater to a diverse customer base in terms of income level, occupation and geography, the bank has aggressively pursued a multi-channel distribution strategy. This includes the rollout of ATMs, bulk note acceptors for customers wishing to deposit large sums of money, internet banking and business online for business customers, a mobile money offering, as well as mobile vans for bulk offsite services.

Mali, Ecobank Mali 

Mali’s economic growth prospects are looking brighter now that the country is slowly overcoming an array of political and security shocks. The World Bank expects gross domestic product growth to average about 5% between 2016 and 2019, which bodes well for the banking sector. 

The winner of this year’s country award, Ecobank Mali, impressed the judges on several counts, including a revised risk management strategy, its commitment to customer service and notable efforts to promote and support small and medium-sized enterprises. 

Ecobank Mali launched a variety of customer-centric programmes to improve their experience. These include an instant card project, whereby customers can receive instant debit cards at bank locations. Moreover, the call centre project has improved service levels by ensuring customers are contacted on a regular basis, while also opening up new avenues for the sale of additional products and services.

The bank has also partnered with insurance firms, including Allianz and Saham, to offer its customers insurance products based on their specific needs. These include residential and car insurance, among others, while travel insurance was launched in 2016. 

Ecobank Mali has 40 branches, with 26 in the capital city of Bamako and 14 in the regions of Kayes, Segou, Sikasso, Mopti, Koulikoro and Gao. It also boasts 85 ATMs and 76 points of sale in outlets across Mali. Both mobile and electronic banking options are available. 

Meanwhile, in 2015 the bank created the SME Club, which provides training and support for this important client segment. 

Mauritius, Mauritius Commercial Bank

For the second year in a row, Mauritius Commercial Bank (MCB), the country’s largest lender, has scooped the country award. This is no small feat in such a highly sophisticated and competitive banking market. But backed by impressive financial results, a sound growth strategy and a commitment to innovation, MCB emerged as a clear winner. The bank’s net profits grew by 35% in 2015, while Tier 1 capital and total assets increased by 39% and 16.3%, respectively. More positive still was the bank’s return on equity, which hit 19.1%, up from 16.5% in 2014. 

“The major accomplishment is the preservation of our financial soundness. While remaining prudent in our approach, we increased our results by 12% in the financial year 2015/16. Our cost-to-income ratio dropped to below 40%, while we reinforced capital adequacy and maintained asset quality,” says Antony Withers, MCB’s chief executive. 

While MCB has a leading position in the domestic market in terms of financing large corporates, the bank is also making good headway when it comes to small and medium-sized enterprises (SMEs). Its loan balance in relation to SMEs grew by 17% in the financial year 2015/16, and under a government-backed financing scheme the bank posted a market share of close to 50% in credit facilities granted between December 2011 and May 2016. 

“Alongside strengthening capabilities to be ready for the next growth cycle, MCB will pursue its strategic objectives across market segments. Locally, the bank will look to strengthen its relationships with its individual and non-individual customers, helped by the widening use of digital technology,” says Mr Withers. 

MCB is the only bank in Mauritius with a comprehensive mobile and online banking platform, known as Juice, and the only bank in Africa to offer standout mobile features including cardless ATM transactions. 

Morocco, Attijariwafa Bank

Though Morocco’s economy may be registering slower than usual growth, accompanied by a fall in credit demand, the winner of this year’s country award, Attijariwafa Bank, has reasons to be cheerful. For one, its financial indicators have remained relatively buoyant despite the more difficult domestic economic environment. 

In local currency terms, net profits were up 3.1% while total assets climbed 2.3% and Tier 1 capital grew by 1.7% in 2015. Meanwhile, the bank’s return on equity grew to 14.8% from 14.6% over the same period.

“In Morocco, Attijariwafa has conducted a thorough strategic review [of its business] and launched [a number of new] initiatives, resulting in improved cross-selling to retail clients, innovation in emerging segments, such as small enterprise lending, and a fast-paced digital transformation. Internationally, its leading and diversified positions in low penetration markets provided a combination of high growth and controlled risk,” says Mohamed El Kettani, chairman and chief executive officer of Attijariwafa Bank. 

Beyond the local market, Attijariwafa has continued its regional growth strategy across the African continent. To that end, it has been responsible for financing about 2000 megawatts of power generation capacity projects across Morocco, Côte d’Ivoire and Mali in recent years. Moreover, it has recently signed a partnership with the Bank of China to promote the renminbi as a reference currency for Sino-African trade. 

Attijariwafa is also notable for the strength of its multi-channel offering. Its banking platforms include e-banking, mobile banking, customer relationship centres and self-service banking via ATMs. This has been buttressed by the launch of several new services, including Attijari Connect, an entirely paperless service for sending and tracking payments and salaries. 

Mozambique, Banco Único 

Mozambique’s economy has seen better days. With growth cooling and the value of the currency, the metical, plummeting, times are hard. But while many banks have suffered in tandem, the winner of this year’s country award, Banco Único, has bucked the trend. 

Though it was only established in 2011, the bank has grown at a remarkable rate. In 2015, Banco Único’s net profits in local currency terms were up 494%, having broken even three years into its operation. Total assets and Tier 1 capital were also up by 35% and 56%, respectively.

“The continued commitment and investment in branch network expansion, product and system innovation, despite the economic situation, jointly with our teams’ expertise and commitment, was key for the bank to keep its growth in total assets, deposits and loans high above the market average, while at the same time consolidate its sustainability and market positioning,” says Antonio Correia, Banco Único’s chief executive.

The bank also enjoyed a 37% growth in deposits and 23% growth in loans in 2015, against a market average of 24% and 21%, respectively. As such, it has attained a 4.5% market share of deposits in Mozambique just four years into its operations. Its customer base also grew by 32% over the course of the same period. 

“Our deep knowledge of the market, key players and stakeholders has been key to help our customers and foreign investors to find and build truly value-added and long-term sustainable partnerships, which strongly contribute to the real economy and to economic growth and development,” says Mr Correia. 

Banco Único prides itself on its “360 degree” customer-orientated structure. Internet banking customers, for example, can receive an e-mailed response from an account manager within less than 24 hours of submitting their request. 

Namibia, FNB

FNB Namibia continues to go from strength to strength. Between 2013 and 2015, the bank’s return on equity rose from 25.4% to 30.7% just as its cost-to-income ratio decreased from 50.6% to 43.7%. In 2015, FNB’s net profits and Tier 1 capital increased by 29% and 24%, respectively in local currency terms, while its total assets increased by 13%. 

The bank enjoyed similar growth numbers in 2014 and 2013. This success is thanks largely to a prudent long-term strategy with a focus on sustainability, an element of FNB Namibia’s entry that impressed the judging panel.

The bank presides over an impressive array of digital distribution channels, with a particular focus on various e-channels including e-transact, e-sales, e-service, e-lend and e-marketing. The bank is also improving its customer service offering by expanding its contact centre to include telesales, telemarketing and teleservices. This is being done together with a focus on self-service channels, such as ATMs and cash recycling machines, as well as mobile banking and e-wallet services. 

Indeed, FNB Namibia’s innovative mobile banking technology, which includes the bank’s E-Wallet, is giving it an edge in the country’s small and medium-sized enterprise market. Crucially, it enables business owners to pay their employees even if they lack a bank account. FNB’s mobile banking point-of-sale devices permit service providers, including plumbers and electricians, to receive payment from clients at source. This reduces the waiting time for such payments and allows for more competitive pricing to be set by the provider. 

Nigeria, Access Bank

Over the past two years, Nigeria’s economy has suffered like few other markets on the African continent. A foreign currency liquidity crunch has been particularly crippling for the private sector. 

But the banking sector, on the whole, remains in good health even if most lenders have taken a hit to their profitability during this period. Few lenders, though, have performed to the same degree as Access Bank, Nigeria’s fourth largest bank by total assets. 

“The operating environment in the past year was underlined by significant macroeconomic headwinds, which impacted asset growth and operational efficiency. Tasked with achieving sustainable growth in a muted environment, we successfully adapted to the challenging operating landscape by effectively executing our strategy and implementing a robust risk management framework,” says Herbert Wigwe, chief executive of Access Bank. 

In local currency terms, net profits jumped by 53% in 2015 while total assets and Tier 1 capital grew by 23% and 30%, respectively. More impressively, between 2013 and 2015 Access Bank’s return on equity grew from 14.8% to 20.4%, while its cost-to-income ratio fell from 73% to 62%. And at a time when non-performing loans (NPLs) across the sector are rising, particularly as a result of troubles in the oil and gas sector, Access Bank’s NPL ratio dropped to just 1.7% in 2015, down from 2.2% in 2014. 

“Against the macroeconomic backdrop, the bank was resilient in its performance, attaining a top three position in the Nigerian banking industry in terms of profitability. We grew and maintained a robust balance sheet, while prudently managing asset quality. Furthermore, we created a digital bank that reinforced the bank’s leadership position and enabled market share growth in the retail space,” says Mr Wigwe. 

Republic of Congo, United Bank for Africa Republic of Congo

United Bank for Africa (UBA) Republic of Congo emerged as the winner in this year’s country award. The bank’s net profits, in local currency terms, jumped by 98% in 2015 while total assets and Tier 1 capital went up 29% and 36%, respectively. More notable is the bank’s long-term growth story. In 2013 its return on equity was just 8% but by 2015 that figure had increased to 36%. Over the same period, its cost-to-income ratio fell from 86% to 57%.

But the judges were also impressed with the bank’s strong financial performance. Beyond the numbers, the bank has developed an effective strategy to position itself as a key contributor to national economic development. To that end, UBA has developed payments systems to cater to importers, such as Moneygram, an in-house product for regional payments, and Africash, which sources foreign currency for fast international cash transfers.

“The current financial and economic downturn from slumping oil prices warranted the rethinking of the business strategy. A more prudent approach in the underwriting of quality risk assets with acceptable returns capped non-performing loans at far below market averages,” says Martin Che, managing director of UBA Republic of Congo.

Meanwhile, UBA has partnered with the Republic of Congo’s leading telecoms providers, Airtel and MTN, to develop mobile money solutions for its customers. With host-to-host integration, both bank account and non-bank account holders can top up their mobile money virtual accounts and execute transactions. Moreover, the U-mobile app enables customers with smartphones to bank through these devices.

“We have made a conscious decision to put customer service at the epicentre of product delivery. With multiple delivery channels (in our business offices and electronic platforms), the ultimate customer service experience was assured and this has led to a corresponding increase in revenues,” says Mr Che.

Rwanda, Bank of Kigali

In recent years the entry of a number of pan-African lenders into Rwanda’s banking market has made the landscape more competitive. But this trend appears to have had little impact on the winner of the country award, Bank of Kigali. In 2015, its Tier 1 capital grew by 12.2% while total assets were up 16.6% in local currency terms. Net profits, meanwhile, hit 11.8%. The bank has also successfully defended, and even grown, its market share, and now accounts for about 34% of total system loans and advances and about 33% of deposits.

“Being a market leader comes with responsibilities. Our challenge as a bank is to make sure our staff do not become complacent. We should continuously innovate, design products that meet customers’ needs and support future growth and development of the financial industry,” says Dr Diane Ngendo Karusisi, CEO of the Bank of Kigali.

The bank has enjoyed notable success in its agency banking network. By December 2015, more than 1.45 million transactions had been executed through the network, while total deposits mobilised amounted to RwFr151.1bn ($186.4m). The bank currently has about 1079 active agents across the country. Not only does this represent good business for the bank, it also delivers positive contributions to Rwanda’s financial inclusion agenda.

Partnering with Rwanda Online, a company that facilitates government-to-citizen and government-to-business payments, means Rwandan citizens can now make payments for government services through the bank’s agency network or by using its mobile banking service.

“The bank celebrates 50 years of existence this year. Going forward, we want to consolidate our position and further expand our business in the country. We want to provide the most innovative financial products under one roof to businesses and citizens. Further, we are thinking of taking our services in the region within the medium term,” says Ms Karusisi.

Senegal, United Bank for Africa Senegal

Senegal has emerged as one of the fastest growing economies in west Africa over the past few years. Gross domestic product growth hit 6.5% in 2015, a rate last seen in the early 2000s. The extractive sectors, fishing and agriculture have largely driven this stellar performance. 

With the economic outlook looking rosy over the medium term, the country’s banks have reason to be happy. Indeed, the winner of this year’s country award, United Bank for Africa (UBA) Senegal, performed particularly well in 2015, mirroring the positive economic climate. In local currency terms, Tier 1 capital grew by 32% while total assets increased by 8% in 2015. Over the same period, net profits rose sharply by 7%. 

Driving this performance has been the bank’s dominance in the pre-paid card space. By signing partnerships to develop co-branded Visa cards, UBA Senegal is gaining a substantial new customer base while promoting financial inclusion across the country.

This includes tie-ups with businesses, associations and organisations including Joni Joni for 50,000 prepaid cards, Cofina for 10,000 prepaid cards and CPS for 5000 prepaid cards. 

In the small and medium-sized enterprise space, the bank has emerged as a key facilitator of cross-border financing and support through the use of its network across 19 African countries.

“Africa is leapfrogging in the use of technology to serve customers. UBA Senegal is deploying technology to provide banking solutions. Our digital banking solutions in the year under review won us several mandates, thus propelling the bank to [be] a dominant leader in the prepaid cards business with 85% of market share. This has greatly contributed to improving financial inclusion in Senegal,” says Amie Sow, managing director of UBA Senegal.

Sierra Leone, Ecobank Sierra Leone

Though times may be hard for Sierra Leone’s banking sector, Ecobank emerged as a clear winner for the country award, based on its strong financial performance and excellent multichannel customer service offerings. Services such as Omniflow, a product that allows corporate customers to execute transactions electronically, caught the eye of the judging panel. Omniflow also allows customers to receive e-alerts, e-statements and perform fund transfers, and there is a similar version for retail clients. Ecobank is the only lender in the country with this capability.

Similarly, Ecobank’s Mobil Platform permits customers to send and receive money using their mobile phones anywhere in the country. The platform can also be used to pay utility bills remotely. The bank has the highest number of point-of-sale locations in the market, so customers can pay for goods and services with their cards, eliminating the burden of carrying excessive quantities of cash.

In terms of physical expansion, plans are afoot to increase Ecobank’s footprint across the country, particularly in mining areas. The further distribution of ATMs across Sierra Leone is also under way. As the bank develops its physical presence, it is hoping to reach out to more small and medium-sized enterprises, which it views as a crucial component of the country’s economic structure. Here, the bank provides general advice in business and financial management to help develop the sector and to promote the formalisation of the economy.

Ecobank Sierra Leone also performs direct customer visits to encourage the use of its products and services and to better serve its larger clients. 

South Africa, Standard Bank

South Africa has been plagued by a variety of developmental challenges in recent years, with cooling economic growth and a fractious political environment leaving little scope for optimism for many of the country’s banks. But success stories are still to be found, none more impressive than that of the continent’s largest bank, Johannesburg-based Standard Bank. A prudent growth strategy has seen Standard Bank fortify its balance sheet, focus its energies on Africa and emerge as the winner of both the South Africa and regional Bank of the Year award.

“Given the macroeconomic context, we were pleased to deliver a 2015 return on equity within our 15% to 18% target range. We think that our financial performance reflects the resilience of our geographical and credit portfolios and good cost discipline,” says Sim Tshabalala, chief executive of Standard Bank.

Indeed, Standard Bank’s performance in 2015 was highly commendable in light of the harder economic environment both at home and across the region. Net profits, in local currency terms, jumped 27%, while total assets and Tier 1 capital increased by 4% and 11%, respectively. Non-performing loans, meanwhile, remained steady on 3.2%.

In February 2015, Standard Bank completed the disposal of its 60% stake in Standard Bank Plc, its London-based global markets business, to China’s ICBC. This deal represented the last move in the bank’s strategic journey to offload non-core businesses in order to focus on Africa. Meanwhile, its seven-year partnership with ICBC continues to go from strength to strength; a framework agreement was signed between the two banks to strengthen this partnership in 2015.

“Growing in Africa – including South Africa – by serving our clients with consistent excellence remains the centre of our strategy,” says Mr Tshabalala.

Sudan, Omdurman National Bank

Sudan’s Omdurman National Bank (ONB) has registered strong growth in recent years despite contending with a number of domestic political and macroeconomic headwinds. Net profits in 2015, in local currency terms, grew by 15%, while the bank’s total assets and Tier 1 capital increased by 11% and 15%, respectively. More encouragingly, its return on equity has grown from 13.7% in 2013 to 27% in 2015, as the ratio of non-performing loans decreased from 13.8% to 4.83% over the same period.

“In recent years, ONB has successfully overcome a number of challenges, the most important of which was the negative economic results of the separation of South Sudan and loss of oil resources, which affected the volume of internal resources. [The bank has also weathered] the effects of the economic embargo imposed on Sudan and associated challenges,” says Dr Abd-Elhameed Mohamed Gameel, ONB’s managing director.

ONB adopts a multi-channel strategy to reach new and existing customers, which includes branches, sub-branches, agents, internet banking, ATMs, points of sale, mobile banking and a messaging service. But the bank harbours ambitious plans to develop these further, encompassing five new branches over the next five years, and increasing the number of ATMs over the next four years by 50%. Plans are also afoot to expand the bank’s POS locations across the country.

“ONB looks forward to continuing to focus on developing its banking technology. In addition, ONB is striving to improve the quality of its banking services, its clients’ loyalty and working environment. The bank is working to maintain its pioneering position in our sector and benefit from the available opportunities, such as the improvement of the political and economic environment,” says Mr Gameel.

Swaziland, Standard Bank Swaziland

Standard Bank Swaziland, the winner of this year’s country award, has hinged its growth strategy on sustainable development, operational efficiency and a high-performance culture. 

Based on the bank’s results in recent years, it is clear this approach is paying dividends. In 2015, total assets grew by 8% in local currency terms, while net profits increased by 12% following a 47% improvement in 2014. Meanwhile, Tier 1 capital grew by 15%.

In a sign that its strong focus on risk and cost management is bearing fruit, the bank’s cost-to-income ratio fell from 61% in 2013 to 57% in 2015, while its non-performing loan ratio halved from 2% to 1% over the period. These numbers point to a bank that is benefiting from a prudent management style and a high-performance culture.

Like other units within the Standard Bank group, the Swaziland operation is beginning to enjoy the benefits of a switch to an upgraded core banking system. Though this process is still under way across the wider continent, it is delivering improvements in terms of enhancing the customer experience through improved products and services, as well as increased operational efficiencies. Known as Finacle, the new system highlights Standard Bank’s commitment to continued improvement through investments in technological and digital innovation.

When it comes to small and medium-sized enterprises (SMEs), Standard Bank Swaziland offers an innovative trader loan product to these entities, meaning SMEs can secure financing based on the turnover in their accounts rather than having to provide expensive and time-consuming financial statements. The bank has also launched an affordable insurance product for these smaller businesses, to offer support and continuity in the event of an unforeseen loss.

Tanzania, Stanbic Bank Tanzania

Tanzania’s banking market has been facing challenges on several fronts in recent times. These include various regulatory demands, increased competition and slowing growth in core business segments. But the winner of this year’s country award, Stanbic Bank Tanzania, has demonstrated a commitment to customer service, innovation and product development that sets it apart from the competition.

“Our customers are at the heart of everything we do, and our focus during the year was on building our relationships with our customers and getting a better understanding of their needs. It is encouraging to note that significant progress was made in improving our service levels and enhancing our self-service channels, in order to deliver better customer experiences,” says Ken Cockerill, chief executive of Stanbic Bank Tanzania.

In 2015, the bank’s Tier 1 capital and total assets grew by 9% and 28%, respectively, although net profits declined marginally over the period in local currency terms. The ratio of non-performing loans continued to decrease, reaching 5% in 2015, down from 11% in 2013.

But beyond these figures, the bank has worked diligently on improving the customer experience. This includes the digitisation of all customer records, meaning business documents in need of renewal are immediately flagged up. Not only does this improve service, it makes compliance efforts far easier.

Standard Bank Tanzania’s focus on improvements to its digital offerings, which include online and mobile products and services, has seen the introduction of a 24/7 customer contact centre, which supports channel migration by dealing with queries and requests and offering after-sale support. This is reducing the number of visits to the bank’s physical branches by offering a quick and convenient customer support alternative.

Tunisia, Attijari Bank

Attijari Bank’s ambitious growth strategy, outstanding approach to customer service and strong financial results all ensured that it scooped this year’s country award for Tunisia. In local currency terms the bank posted an increase to its net profits of 23.4% in 2015. Its total assets and Tier 1 capital grew by 14% and 7.8%, respectively, over the same period. This was accompanied by a boost to its return on equity, which rose from 22% in 2014 to 26% in 2015. 

The bank’s plans for growth are focused on a sustainable approach to mature business segments, including core areas such as retail and corporate banking. It also wants to improve its business flows with high-potential segments including affluent individuals, professionals, micro enterprises, and small and medium-sized enterprises (SME). 

Beyond this, Attijari Bank is looking to target strategic opportunities including offering services to the large Tunisian population residing in Europe, and further developing its capacity to cater for large corporates by establishing a transaction banking unit. Upgrades to the bank’s digital capabilities are also under way. Attijari Bank is currently developing a new digital platform designed to aggregate internal data and provide detailed and automated internal report generation. 

Meanwhile, efforts are ongoing to improve the bank’s multi-channel offerings and digitalise branch operations. To this end, the bank is merging its various online services into a streamlined and user-friendly web experience. Attijari Bank is also transforming its customer relationship management platform from a reporting IT tool to a commercially focused sales tool. 

With respect to its dedicated SME offering, the bank now has 25 relationship managers working on this business segment, and is also trialling the rollout of relationship managers to micro enterprises and entrepreneurs. 

Uganda, Stanbic Bank Uganda  

Stanbic Bank Uganda’s performance in 2015 was impressive even by the standards of the continent’s top banks. With a return on equity of 29% and a cost-to-income ratio of 53%, Stanbic is in good health. These figures were backed by a set of solid results: net profits jumped by 11% in local currency terms, while total assets and Tier 1 capital increased by 6% and 21%, respectively. The bank’s ratio of non-performing loans, meanwhile, dropped from 3.9% to 1.5% between 2014 and 2015.

These numbers, together with the bank’s drive towards excellence in digital service and product offerings, ensured that it took this year’s country award for Uganda. 

“We maintained our position as Uganda’s leading bank in terms of assets and profitability registering a record profit before tax of $43m for the six months ending June 30, 2016. In addition, we continue to digitise the bank and invest in technology to bring down our cost of servicing customers,” says Patrick Mweheire, chief executive of Stanbic Bank Uganda. 

Before and after the introduction of the Financial Institutions (Amendment) Act 2015, in which bancassurance, Islamic banking and agency banking were all introduced to the Ugandan market, Stanbic Bank Uganda established internal specialist working teams to ensure it was prepared for these new market opportunities. It has also been providing advice and best practice input to the Bank of Uganda, the country’s central bank, on agency banking and bancassurance as secondary legislation is developed. 

“We plan to further improve our digital banking offering by increasing and enhancing the current channels for our clients. We see opportunities within bancassurance and agency banking with the passage of the 2015 Financial Institutions amendment bill. Agency banking will drive our financial inclusion agenda and allow us to further penetrate the bottom of the pyramid at a lower cost to serve,” says Mr Mweheire.

Zambia, FNB Zambia 

Falling copper prices, reduced exports and diminished foreign direct investment have all taken their toll on the Zambian economy in recent times. Gross domestic product growth fell to about 3% in 2015 after an annual average rate of 7% between 2010 and 2014. Rising inflation and the fall in value of the kwacha saw the central bank hike up interest rates and impose a higher cash reserve ratio, 18%, on commercial lenders. Cumulatively, these have made the going tough. 

This year’s Zambia country award winner, FNB Zambia, has developed a two-pronged strategy to deal with these challenges. First, it is targeting its efforts towards high-growth sectors of the economy. It has carved out a niche in the agriculture and agribusiness sectors of the economy, for instance, with 35% of all loans directed to these segments. 

Second, the bank is prioritising innovation to attract new customers and better serve existing clients. The launch of a market-first mobile business app has been a particular success.

“Innovation was a key pillar of our strategy over the past year. To enhance service delivery and customer experience, we deployed a market-first point of service at fuel station forecourts operating on a Wi-Fi platform. Further, we installed automatic deposit terminals at all our branches to allow for real-time cash deposits into customers’ accounts,” says Leonard Haynes, chief executive of FNB Zambia.  

FNB Zambia has also been expanding its physical footprint across the country. The addition of four new branches has been accompanied by the rollout of 35 new ATMs, including 14 deposit-taking machines and eight slimline mini ATMs. 

Meanwhile, further investments in the point of service terminals have brought the total number to more than 1000 across the country. 

Zimbabwe, Ecobank Zimbabwe

Ecobank Zimbabwe enjoyed a strong year in 2015 with sound financial results going hand in hand with the introduction of innovative new services, products and processes. Net profits for the year, in local currency terms, increased by 87%, while total assets and Tier 1 capital grew by 48% and 33%, respectively. Encouragingly, the bank’s return on equity has grown from 6% in 2013 to 15% in 2015, while its cost-to-income ratio decreased from 67% in 2014 to 58% in 2015. 

Progress in the digital banking space also caught the attention of this year’s judging panel. The acquisition of touch screens for internet banking use has enabled these devices to be deployed at all branches across the country. Customers are now becoming accustomed to conducting their business and transactions online, and eventually it is hoped this will speed the migration of branch-based visits and business to the online space. 

Ecobank Zimbabwe is also aggressively pursuing a point-of-sale (POS) terminal multiplication drive. The Ecobank POS has a unique market advantage as it is the only terminal to accept Visa, MasterCard, PAC and ZimSwitch cards. 

The launch of a USSD mobile banking product allows customers to check their balances, mini-statements, and to transfer funds internally, pay bills and purchase airtime anywhere in Zimbabwe. This product is available on any of Zimbabwe’s three mobile network operators.  

On the small and medium-sized enterprise (SME) front, the bank has established a dedicated SME desk with specialised relationship managers and credit risk analysts, which also benefits from a sub-segment focusing on female entrepreneurs. These efforts have improved access to finance for SMEs across Zimbabwe. 

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