Africa's top lenders from 2019.

 
 
 
     

Algeria, Citi Algeria

Algeria’s economy faces an uncertain 2020, thanks to ongoing volatility in energy revenues and political unpredictability following the end of the Abdelaziz Bouteflika’s 20-year presidential era in April 2019. Amid this uncertainty, Citi Algeria has again been chosen as the country’s Bank of the Year, recognised particularly for innovations in its trade finance business. 

Citi Algeria registered solid results in 2018, despite a 5% decline in its asset base. Its profits rose by 28.1% during the year, with return on equity increasing to 23% from 17% in 2017. Efficiency increased significantly, with the bank’s cost-to-income ratio improving to 28% in 2018 from 35% the previous year. 

Citi Algeria responded to regulatory changes introduced in November 2017, which targeted trade transactions, by offering pre-shipment financing from April 2018 onwards to support its clients’ increased funding needs. 

The bank was the first lender in the country to offer onshore hedging solutions to corporate clients – following the opening of the forwards market by the Algerian central bank in January 2018 – together with training sessions for clients. It also introduced non-deliverable forward contracts for its multinational clients. Such moves helped the bank to boost its annual revenues by 22% during 2018. 

In a bid to improve the client experience, Citi Algeria also launched its ‘CitiDirect’ functionality for electronic import acceptances, looking to fully digitise the hitherto paper-based process. The process fits into the bank’s wider digitisation programme, which has already seen it virtually eliminate the need for paper-based documents for bank guarantees.  

“We remain focused on achieving a stronger business performance by delivering the best services to our clients in Algeria and investing in the products in which we see the best growth, as well as [investing in] our own infrastructure for the purpose of safety and soundness,” says Ramz Hamzaoui, Citi Algeria’s chief country officer and north Africa sub-cluster head.

Angola, Standard Bank Angola

Angolan banks experienced significant rises in profitability in 2018 in spite of the ongoing contraction of the country’s economy, with the impact of a weaker kwanza offsetting softer growth in loans. Judges selected Standard Bank Angola as the country’s top lender for 2019, with impressive numbers backed up by its new offering for Mandarin speakers and saving initiatives. 

The 50% drop in the value of the kwanza prompted a 90% surge in Standard Bank’s profits in 2018, together with a 39% rise in assets and a 62% rise in Tier 1 capital. Return on equity rose to 63%, from 60% in 2017. Meanwhile, the lender’s non-performing loan ratio dropped to just 1%, from 5% in 2017, compared with a sector wide average of 31.6%.

One of Standard Bank Angola’s key initiatives during the review period was the launch of Mandarin language support for its internet and mobile banking platforms, as part of the bank’s commitment to the local Chinese community and the important trade corridor between Angola and China. 

Also of note was the bank’s ‘Swipe and Save’ initiative, that enables customers to automatically pay a pre-defined amount into a savings account whenever they use their debit card. The initiative both encourages a savings culture among customers and serves to increase the bank’s loan book. 

“Standard Bank Angola aims to drive Angola’s growth by changing people’s lives and being more than a bank,” says Luís Fialho Teles, CEO of Standard Bank Angola. “We are a universal financial services organisation centred around delivering to our clients in a digital way.” 

Benin, UBA Benin

Benin has benefited from strong economic growth in recent years, combined with fiscal discipline by the government that has seen the country’s debt-to-gross domestic product ratio decrease. The economy, dominated by agriculture and transport, is set to grow by about 6.6% in 2019, with similar rises forecast for 2020 and 2021.

UBA Benin received the country’s best bank for 2019 award, impressing the judges with its solid financial performance combined with innovations in fintech and virtual banking. 

After falling by 2% in 2017, UBA Benin’s asset base increased by 20% in 2018, including a doubling of its Tier 1 capital. Net profit also rose by 13%, though return on equity fell to 18% from 32%. 

Efficiency continued to improve, with the cost-to-income ratio falling to 72% in 2018 from 76% in 2017. Perhaps more significant, however, was an improvement in asset quality, with the bank’s non-performing loan ratio falling to 4% in 2018 from 16% the previous year. 

January 2019 saw the launch of Leo, UBA’s artificial intelligence-powered ‘virtual banker’, in the Benin market. Hosted on Facebook Messenger (with a WhatsApp launch to come), Leo can be used by customers for transactions such as opening accounts, transferring funds, purchasing airtime and downloading statements. The service attracted more than 1600 users in its first six months of launch. 

The bank continues to support local fintechs and work closely with Benin’s government on its digitisation programme. 

In its bid to boost financial inclusion in the country, UBA Benin has established a widespread prepaid card distribution network, and continues to expand its reach (and cut costs) by further increasing its agent network. 

“I thank all the staff of UBA Benin, especially those brave men and women who have been living the core values of UBA on a daily basis who work tirelessly, be it in the front office or back office, putting the customer first to ensure that an excellent service is always delivered, even at all odds,” says Ellis Nzo Asu managing director and CEO for UBA Benin.

Botswana, Barclays Bank of Botswana

Barclays Bank of Botswana was the judges’ choice for the country’s top bank of 2019, with its strong commitment to its corporate social responsibility complementing a strong financial performance. 

After a minor contraction in 2017, the bank’s asset base grew by 12.3% during 2018, including a 1.9% growth in Tier 1 capital. Meanwhile, net profit growth hit 5.2% for the year. Return on equity improved slightly to 23% in 2018 from 22% in 2017, even as the bank’s cost-to-income ratio slipped from 52% in 2017 to 55% in 2018. Asset quality continued to improve, however, with the non-performing loan ratio dropping to 5.9% from 6.1% the previous year. 

Barclays Bank of Botswana partnered with Irish fintech Fexco in August 2018 to launch ‘Dynamic Currency Conversion’, which enables tourists to pay in their home currencies from local point-of-sale machines at an effective lower cost, while being informed in real time of the amount payable. The bank refreshed its mobile banking app in April 2018, improving the user interface and adding fingerprint security. 

As part of its corporate social responsibility programme, in 2018 Barclays Bank of Botswana relaunched the FG Mogae scholarship (originally introduced in 2008) with an investment of P3m ($275,000), to fund masters programmes for 38 local students at the country’s universities. 

The bank also continued to develop its ‘Ready to Work’ initiative, launched in late 2016, which provides young people with the skills they need to secure employment. Its focus in 2018 was to identify private sector workplace opportunities for its graduates. By the end of December, 216 youth had been given either internship or employment opportunities, with an additional 519 having graduated from the programme. 

Burkina Faso, Orabank Burkina

The agriculture-based economy of Burkina Faso remains in good health going into 2020, even as the security situation in the country continues to worsen.

The west African nation’s economy is set to grow by 6% in 2019 according to the International Monetary Fund, with similar growth levels forecast for 2020 and 2021.

This is the third year that Orabank Burkina has taken home the country’s Bank of the Year award, and this is thanks to its financial performance, the growth of its small and medium-sized enterprise (SME) business, and its environmental, social and corporate governance (ESG) commitments.

Orabank’s SME lending business received a boost in January 2019 when the bank partnered with the government’s small business promotion body to provide CFA Fr5bn ($8.4m)-worth of funding for selected SMEs. The partnership follows a 40% increase in the bank’s SME loan book over the previous three years.

Orabank’s ESG commitment continues to grow, not least through its Sustainable Use of Natural Resources and Energy Finance programme. This was created in conjunction with French development agency AFD as a way to finance innovation in renewable energy.

The bank is also active in the social housing segment, providing financing for the construction of 624 housing units for the staff of national water utility Onea.

Orabank also continues to innovate on the digital front, with the launch of its multi-service digital banking offering, Keaz, due by the end of 2019.

On the financial side, Orabank’s net profit surged by 38% during 2018, with its asset base increasing by 25%. While return on equity slipped to 26% in 2018, from 31% in 2017, its cost-to-income ratio improved to 57% from 61% over the same period, with the non-performing loan ratio unchanged at 2%.

Cameroon, Ecobank Cameroon

Amid strong competition, Ecobank Cameroon emerged as the west African country’s Bank of the Year, with judges impressed both by the lender’s financial inclusion drive and its improved financials. 

After two years of declining assets, Ecobank Cameroon bounced back in 2018, with a 1.5% growth in assets and an 18.6% rise in Tier 1 capital. Net profit, which fell 20.5% in 2017, rose by 28.18%. These rises were complemented by improvements in returns and efficiency; return on equity rose to 40.16% in 2018 from 37.16% in 2017, with the bank’s cost-to-income ratio improving to 47.1% from 56.98%. Non-performing loan ratio continued to rise, however, hitting 6.05% from 5.2% previously. 

Ecobank Cameroon’s strategy to boost financial inclusion in the country took many forms during the review period. In common with lenders across the continent, the bank expanded its agency banking model, via strategic partnerships with microfinance institutions, telecoms providers, retail distributors and other accredited partners. This resulted in both a wider geographic reach and an improvement in efficiency, as reflected in the bank’s lower cost-to-income ratio. 

Beyond the growth of its agency network, Ecobank Cameroon rolled out new products designed for lower income segments. Its ‘Swag’ account, targeting students, costs CFA Fr250 ($0.42) per quarter, and is designed to bring students into the financial system from an early age. The bank’s Evolution accounts, meanwhile, target small retailers, motorcycle riders and ‘buyam sellams’ (small traders who buy from the farms and sell in the towns), and are virtually free.

“We have harnessed technology to empower our customers and enrich their experience, as well as providing know your customer-lite onboarding to the previously unbanked,” says Gwendoline Abunaw, managing director at Ecobank Cameroon. 

Cape Verde, Banco Interatlântico

For the second year in a row, Banco Interatlântico has won the Bank of the Year award for Cape Verde, with another impressive set of financial results and significant improvements in its internal processes.

Banco Interatlântico’s impressive bottom-line growth continued into 2018, with net income increasing by 205.48%. Of greater significance, perhaps, was the 11.55% growth in assets (including a 6.51% rise in Tier 1 capital) recorded during the year, compared with a 7.56% drop in 2017.

The rise in profits boosted return on equity, which jumped to 8.61% for 2018 compared with 3.05% in 2017. Meanwhile, the non-performing loan ratio, while high, improved to 16.2% in 2018 from 17.79% in 2017. The bank recorded a 42% rise in new loans in 2018 after simplifying its consumer credit procedures. It also reduced overdue credit by about 11% through better management of its credit portfolio.

On the IT side, Banco Interatlântico undertook some significant upgrades, including implementing an IFRS 9 and impairment solution, together with US Foreign Account Tax Compliance Act and anti-money laundering software, and began work on an automation project for external reporting maps and the development of a new internal communication platform. In 2018, the bank completed work on its app, which enables users to perform operations such as internal and interbank transfers and transaction queries. 

Chad, UBA Chad

Chad’s economy bounced back in 2018, returning to modest growth following the recession of 2016 and 2017. The country is expected to record economic growth of 2.4% in 2019 and a broadly similar level in 2020, according to the International Monetary Fund, even as the security situation in the country and its central African neighbours remains perilous.

Despite such challenges, the country’s banking sector has stabilised, with lenders reporting increases in both credit and deposits, and non-performing loans gradually receding from historically high levels.

UBA Chad has emerged as the country’s top lender, thanks to improving profits and asset quality, while continuing to focus on financial inclusion across different segments.

While UBA Chad remains committed to its branch network, opening three new physical branches in 2019, the bank has bolstered its mobile offering, which enables users to open an account with only an active mobile phone number. After recording 7488 transactions in 2018, the service has grown rapidly, registering 5740 transactions in the first seven months of 2019.

Leo, UBA’s virtual banking assistant, reported 1250 accounts opened via the service, available via Facebook Messenger, between its launch in May 2018 and July 2019.

On the financial side, a rise in profits of 816% was accompanied by a 9% decrease in the lender’s asset base during the year, with return on equity surging from 5% in 2017 to 28% in 2018. Meanwhile, the bank’s non-performing loan ratio, which swelled to 18% in 2017, recovered to 5% in 2018. 

“The success of UBA is based on several factors, including quality customer service, a well-elaborated strategy for financial inclusion in the country and easy-to-use innovative digital solutions,” says Noubasra Natolban, managing director and CEO at UBA Chad.

“Added to this is our prudent approach to credit risk without neglecting the unwavering desire to contribute to the growth and development of Chad.”

Côte d’Ivoire, UBA Côte d’Ivoire

The award for Bank of the Year for Côte d’Ivoire is one of Africa’s most prized titles; the west African country is home to one of the continent’s fastest growing economies, thanks to its business-friendly reforms and heavy investment in infrastructure. The International Monetary Fund (IMF) forecasts 7.4% growth in gross domestic product in 2019, with a broadly similar level expected in 2020. 

Côte d’Ivoire’s banking sector has also been strengthened by government reforms, such as new regulatory standards aligned with Basel II and Basel III principles – though the IMF insists that more work must be done to finalise the restructuring of the country’s public banks. 

UBA Côte d’Ivoire takes the country crown this year, with judges noting its significant lending activity to local entities, alongside its impressive financial results and prepaid Visa card initiative. 

The bank increased its shareholder funds by CFA Fr12bn ($20.2m) in 2017, enabling it to increase significantly its participation in domestic credit issuances. Among the many mandates the bank has won was the mandated lead arranger role for a CFA Fr68bn seven-year term loan for the Côte d’Ivoire government as part of preparations for the 2021 African Cup of Nations football tournament. 

The bank’s asset base doubled in 2018, with Tier 1 capital rising 27%. Net income rose 122%, with return on equity rising to 21.5% from 10.2% in 2017. Efficiency improved as well, with the lender’s cost-to-income ratio reducing to 63.5% in 2018 from 86.7% the previous year. 

UBA Côte d’Ivoire also delivered 300,000 co-branded Visa prepaid cards – which double up as student IDs – to the country’s Ministry of Higher Education. 

“UBA Côte d’Ivoire has shifted from product-based, transactional focus, to a model that is more customer centric,” says Sarata Kone, managing director and CEO of UBA Côte d’Ivoire.

“We want to develop more meaningful relationships with consumers and put them at the heart of everything we do.” 

Democratic Republic of Congo, Trust Merchant Bank 

Amid stiff competition, Trust Merchant Bank (TMB) has emerged as Bank of the Year for the Democratic Republic of Congo for the second year in a row, thanks to its all-round impressive financial performance, moves to enter the country’s newly liberalised life insurance market, and the upgrade of its digital systems.

TMB’s profits rose by 70% in 2018, with its asset base increasing by 44%, impacted only in part by the 2.8% depreciation of the local currency during the year. Return on equity rose to 14.48% from 10.14% in 2017, while cost to income improved to 68.2% from 70.9%. 

While TMB’s non-performing loan (NPL) ratio remains higher than some of its peers due to its definitions used – with restructured loans automatically classified as NPLs – asset quality improved during 2018 to 10.24% from 11.9% in 2017, even as the bank’s conservative approach to lending means that it provisions for NPLs at levels higher than its competitors. 

The judges also took note of TMB’s decision to enter the country’s life insurance market, with the sector’s regulator accrediting the country’s first wave of private insurers earlier this year. TMB has so far invested more than $1m in its Afrissur subsidiary, with a $10m capital investment approved by the bank’s board in March 2019. 

In its core banking operations, in 2019 TMB began implementing FinCluez, a business intelligence and analytics platform that allows bank users to derive insights from financial data, as well as FinFlowz, an end-to-end digitisation framework that enables the digitisation of both frontline and back-office operations.

“[TMB’s success is down to] our dynamic employees, an unwavering commitment to operating at the highest of standards, most notably in the areas of compliance and risk management, and our digital transformation programme that is propelling the bank to the forefront of the digital revolution,” says Oliver Meisenberg, chief executive of TMB. 

Djibouti, Exim Bank Djibouti 

Djibouti’s status as a key African trade hub continues to grow, supported by massive investment in its transport and logistics centres and several business-friendly reforms, including the ongoing construction of the continent’s largest free-trade zone. 

Exim Bank Djibouti has once again won the country’s top lender award, enhancing its relationships with Djibouti’s port community, and Ethiopian trade partners in particular. 

The bank has integrated the port payment gateway into its systems in order to capture collection flow from port users, thus enabling the processing of online payments and the issuance of e-documents. 

Exim Bank Djibouti has paid particular attention to its Ethiopian relationships, signing a tripartite agreement with the Ethiopian shipping line and Djibouti transit association that will route transit fees paid by Ethiopian traders to the bank, with more than 40 local transit companies already participating. Exim also introduced a collateral financing product, which allows importers and exporters to pledge their existing assets as security in order to raise additional cash to finance their transaction cycles.

The bank has been awarded a licence to open a representative office in Ethiopia to further promote trade and manage end-to-end trading activities between the two countries.

Exim Bank Djibouti’s financial performance for 2018 was solid, despite a 7.3% drop in profits. Assets grew by 10.4%, with Tier 1 capital increasing by 14.6%, while the non-performing loan ratio was stable at 0.79%. Return on equity decreased slightly to 29.7% in 2018 from 30.4% in 2017, while the cost-to-income ratio slipped to 56.9% from 55.5% over the same period. 

Egypt, QNB Alahli Egypt 

Competition to become Egypt’s Bank of the Year for 2019 was strong as its lenders posted some of Africa’s best growth figures for 2018, feeding off the country’s booming economy. 

The empowerment of Egypt’s private sector, particularly its small and medium-sized enterprise (SME) community, is seen as crucial for sustaining economic growth into 2020 and beyond. QNB Alahli Egypt, this year’s Bank of the Year, has embraced this reality with a new and highly segmented SME strategy, complementing an impressive set of financial results. 

The Central Bank of Egypt gave lenders a target of allocating 20% of their loan books to SMEs by the end of 2019. QNB Alahli exceeded this target early, hitting 23% at the end of 2018, by spinning off its SME business as an independent business line. This entity was able to introduce its own customer segmentation scheme according to sector and turnover levels, with new initiatives for women in business. 

The bank’s SME business has been allocated key resources, including new relationship managers focusing on microfinance and very small enterprises. More than 80% of the bank’s branches are now serving the SME segment. 

On the technology side, the bank was the first in Egypt to introduce the Visa Scan to Pay (previously m-Visa) service, part of an integrated solution package service offered to corporate and SME clients.

In 2018, QNB Alahli Egypt continued its remarkable profit growth of the previous two years, with a 30% rise in net income. Assets increased by 15%, with Tier 1 capital up 35%. Return on equity nudged up to 28.1% from 27.9% in 2017, while the cost-to-income ratio improved to 23.6% from 24.5% over the same period. The non-performing loan ratio weakened to 2.42% from 2.22%, but still remains below 2016’s level. 

Gabon, UBA Gabon 

While the International Monetary Fund expects Gabon’s gross domestic product growth to improve to 2.9% in 2019 (from just 0.8% in 2018), the country’s economy still faces significant challenges before it can unlock the potential of its oil, mining and timber industries. 

UBA Gabon, the judges’ choice for the country’s Bank of the Year in 2019, has thrived despite an uncertain climate, posting impressive financial results and introducing new digital services. Profit growth hit a three-year high in 2018, increasing by 160% for the year. Equally impressive was a 39% growth in the bank’s asset base. Efficiency continued to improve, with the cost-to-income ratio falling to 51% in 2018 from 60% the previous year. 

As part of a strategy to become more client centric, UBA Gabon benefited from the national rollout of its parent group’s digital services, notably its Leo virtual banking chatbot. Following its August 2018 launch, more than 1300 accounts have been opened in Gabon via Leo in its first year, with about CFA Fr130m ($218,000) in transfers and airtime purchases registered over the same period. The bank has also rolled out its ‘Magic Banking’ service, which offers banking services over USSD mobile technology. 

“At UBA Gabon, we have continued to build strong digital platforms, supported by first-class IT, to deliver fast and efficient services to our customers, driven by a young, creative and dynamic workforce,” says Chioma Mang, UBA Gabon’s managing director and CEO. “Having a clear direction on what we need to do in a tough economic and regulatory environment ensured we were able to sustain our business growth during the year.” 

Gambia, Ecobank Gambia 

Gambia’s economy grew impressively in 2018, following the peaceful transfer of power to president Adama Barrow in early 2017. Growth in the agriculture- and tourism-based economy hit 6.6%, with a similar figure forecast for 2019, even as the country remains in a state of debt distress, according to the International Monetary Fund. 

Ecobank Gambia was the judges’ choice for the country’s Bank of the Year thanks to solid financials and the success of its payment and remittance apps. The bank’s asset base increased by 32% during 2018, including a 21% rise in Tier 1 capital, while net profit rose 13% over the same period. Key ratios were mixed; return on equity slipped slightly to 24.6% in 2018 from 25% the previous year, with cost-to-income rising to 53.8% from 52%. The bank’s non-performing loan ratio, however, improved to 0.3% from 0.8% over the period. 

Ecobank Gambia got the nod over its competition thanks to its digital services, taking advantage of a group-wide commitment to innovation. Registered users of its Ecobank Mobile app rose to 35,000 in 2018, with the app undergoing several enhancements during the year, including the ability to purchase airtime.

The lender’s agency programme saw significant strides over 2018 and 2019, with more than 100 agents signed up, generating significant transaction volumes. Other new services launched included the digital Xpress Account that can be opened via a mobile phone, and Xpress Cash, which enables customers to generate an e-token that can be sent to family and friends and used to withdraw cash from any Ecobank ATM or accredited Ecobank agent.

“We benefit greatly from Ecobank’s ‘one bank’ model, which enables us to offer state-of-the-art borderless digital products, services and solutions to our customers,” says Carl Asem, managing director of Ecobank Gambia. 

Ghana, Fidelity Bank Ghana

Ghana’s economy enters 2020 on a stable footing, following the reining in of public spending as part of an International Monetary Fund (IMF) aid programme that ended in April 2019. The IMF anticipates the Ghanaian economy will grow by 7.5% in 2019, compared with 6.3% the previous year. The central bank, the Bank of Ghana, has bolstered the local banking sector by cleaning up the savings, loans and finance house sub-sectors, introducing a new deposit insurance scheme and strengthening regulatory oversight. 

In a closely fought contest, the judges selected Fidelity as Ghana’s premier lender for 2019, not only because of its impressive financial performance, but also due to its partnership with regional non-governmental organisation, the Medical Credit Fund. 

Fidelity’s finances registered significant improvements across the board in 2018. Net profit surged 78.85% during the year, with assets and Tier 1 capital increasing by 30.45% and 33.11%, respectively. Return on equity improved to 26.71% in 2018 from 17.6% the previous year, with its cost-to-income ratio reducing to 56% from 60% over the same period. Perhaps most significantly, Fidelity’s non-performing loan ratio halved to 8.13% over the year. 

The partnership with Medical Credit Fund allowed the bank to launch a financing product for private sector health providers in 2018, enabling smaller operators to renovate their facilities or purchase new medical equipment.

Another significant milestone was the introduction of a new agent management system, which has significantly reduced incomplete transactions and improved the user experience for agents and customers. It also allows agent points to effectively serve as full bank branches, as transactions are now conducted in real time.  

Guinea-Bissau, Orabank Guinea-Bissau 

Banks face a challenging operating environment in Guinea-Bissau, which has one of Africa’s smallest onshore populations. While the economy is forecast by the International Monetary Fund to grow by 4.6% in 2019, the country struggles with widespread corruption and weak governance, exacerbated by extreme political instability. 

Orabank Guinea-Bissau, the judges’ choice for the country’s Bank of the Year for 2019, has weathered these challenges, posting an impressive financial performance and undergoing a significant internal reorganisation. 

The bank posted a 192% rise in net profits during 2018, with its asset base increasing by 24.6%. Return on equity improved to 30.2% in 2018 from 11% in 2017, while its cost-to-income ratio fell from 85% to 67%. Non-performing loans remain high, but the ratio improved from 24% in 2017 to 13% in 2018. 

Orabank Guinea-Bissau undertook an internal reorganisation between January 2018 and June 2019, recruiting a director of treasury and overhauling its treasury department. This enabled the bank to maximise its foreign exchange margin, substantially reduce its charges on interbank borrowings and invest in more profitable securities with haircuts and equity commissions. 

On the digital front, the bank continues to roll out electronic payment terminals to traders, and deploy additional ATMs. It has also partnered with Western Union to deploy Western Union Online, enabling international money transfers.  

Kenya, Equity Bank

Equity Bank has taken the prize for Kenya’s top lender for the second consecutive year, boosting its international footprint while continuing to offer innovative digital services. 

The bank posted solid results for 2018, reporting a 4.8% growth in profit and a 9.3% rise in total assets, even as Tier 1 capital dropped by 10.2%. Return on equity continued to improve, rising to 22.8% in 2018 from 21.6% in 2017, while the cost-to-income ratio fell to 55.3% from 57.5%. Asset quality worsened slightly, however, with the non-performing loan ratio increasing to 7.2% from 6.3%. 

In August 2018, Equity Bank spun off its technology arm, Finserve, as a separate entity to provide fintech solutions to both Equity and clients across Kenya and other African markets. One of Finserve’s first actions was to launch mKey, Africa’s first smartphone keyboard app that fuses social and financial services into an integrated lifestyle. The app was downloaded 320,000 times in the first seven months of its launch. 

After pausing its international expansion strategy in 2016, Equity returned to expanding its footprint in 2019, announcing an agreement to buy Atlas Mara’s banking operations in Tanzania, Zambia and Mozambique, as well as a majority stake in Banque Populaire du Rwanda. This was followed in September 2019 with an agreement to acquire Banque Commerciale du Congo, the Democratic Republic of Congo’s second largest bank. 

Dr James Mwangi, group CEO and managing director of Equity Group Holdings, the bank’s parent company, says: “Instead of just providing banking services, we provide financial solutions with a business model that is economically viable, socially sound and has become very successful in shared prosperity.”  

Lesotho, Standard Lesotho Bank 

Lesotho’s banking sector remains sound, even as lending to businesses remains low. Standard Lesotho Bank has emerged as the country’s top bank, thanks to a recovery in profits, the financing of Lesotho’s nascent medicinal cannabis market, and programmes designed to support local entrepreneurs and small and medium-sized enterprises (SMEs). 

After a difficult 2017 during which profits fell 23%, Standard Lesotho Bank’s bottom line stabilised in 2018, with a 1% rise in net profit. The bank’s asset base grew by 7% in 2018, including a 5% rise in Tier 1 capital. 

Business uncertainty continued to weigh on key metrics, however, and return on equity slipped to 25.2% in 2018 from 26.1% in the previous year, with its cost-to-income ratio weakening to 53.6% from 51.4%. The bank’s non-performing loan ratio rose to 3.6% from 3.1%. 

Standard Lesotho Bank remains committed to entrepreneurship and the country’s SME segment, launching an entrepreneurship development programme in March 2018. This includes a physical hub for entrepreneurs to use, along with a training programme for selected SMEs.

The bank’s corporate and investment banking also became the first financial services provider to offer solutions for the country’s nascent medicinal cannabis industry, providing an 11 million loti ($740,000) loan facility to Medigrow for the establishment of a state-of-the-art laboratory for testing and the quality control of medicinal cannabis.

Standard Lesotho Bank has built on its recently upgraded core banking system, with the rollout of seven bulk note depositor machines, and has upgraded the functionality of ATMs, enabling, among other services, the payment of school fees by parents.  

“Our success is a result of careful planning started by the upgrade of our core system,” says Thabiso Tsenki, acting chief executive of Standard Lesotho Bank. “We are now positioned to become the ‘bank of the future’.” 

Malawi, NBS Bank

NBS Bank’s selection as Malawi’s top lender for 2019 reflects not only its impressive financial turnaround, but also the innovation in its credit and insurance offerings.

The lender returned to the black in 2018 after trimming losses a year earlier. As a result, return on equity rose from -38% in 2017 to 15% in 2018. NBS’s assets grew by 10% in 2018, with Tier 1 capital increasing by 15.53%. Expenses remain high, however, with cost to income rising from 85% in 2017 to 88% in 2018, although this remains below 2016 levels. 

The bank’s non-performing loan ratio of 34% at the end of 2018 remains significantly higher than the sector average of 6.1%, but represents an improvement of the bank’s 41% figure for 2017. 

NBS is midway through its five-year turnaround strategy, launched in 2017, which has seen it bring in Dutch lender Rabobank as a partner. The lender’s customer deposits grew by 29% in 2018, one of the highest growth rates in the sector for the year. It also focused on strengthening its capital position through balance sheet optimisation and net profit growth. 

In February 2018, the lender launched its Kuwala Energy Finance product, offering asset financing for customers buying alternative energy solutions including solar panels, inverters and battery packs. Such energy solutions have become increasingly sought after, as the country’s hydroelectric power supply suffers due to the effects of climate change. 

In April 2018, NBS entered the insurance market by launching its bancassurance offering, partnering with sister companies Nico General and Nico Life, offering products including funeral and medical cover and crop insurance. 

Mauritius, Mauritius Commercial Bank

The title of Bank of the Year for Mauritius is one of our most hotly contested awards, with several high-quality submissions. For 2019, the winner is Mauritius Commercial Bank (MCB), which has combined extremely solid financial results with a pioneering approach to digital transformation.

MCB’s asset base grew by 11.5% in the year to June 2018, a higher percentage growth than the previous 12-month period, while Tier 1 capital increased by 11.1%. Net profit growth for the period hit 8.4%, compared with 11% for the year ending June 2017, with return on equity slipping from 17.8% to 17.2%. 

Significantly though, MCB’s asset quality has continued to improve, with the net non-performing loan ratio dropping to 2.8% in June 2018 from 4.3% for the same period in 2017. Efficiency also saw gains, with the bank’s cost-to-income ratio falling to 36.2% from 39.9%. 

In its home market, MCB’s digital transformation strategy stands out, in particular its Digital Factory initiative, which serves as an incubator for innovative customer-centric operations. Consisting of 85 people with competencies across a wide range of fields, early outcomes of the centre include new digital platforms for mortgage and small and medium-sized enterprise banking products 

Beyond its digital offering, MCB has pressed ahead with its international expansion plans, raising an $800m syndicated loan in April 2019 to deepen and expand its presence in continental Africa and the wider Indian Ocean region. 

“Our success has been underpinned by the execution of our focused strategic objectives; we broadened and deepened our involvement in niche markets across Africa and further enriched our customer experiences, as we pursued our digital transformation,” says Alain Law Min, MCB’s CEO. 

Morocco, Société Générale Maroc

Moroccan banks have so far remained resilient in the face of weaker growth in the country, with sluggishness in the agricultural and tertiary sectors impacting the economy. Amid strong competition, Société Générale Maroc has emerged as the country’s Bank of the Year for 2019, with strong financials complemented by an ambitious strategic overhaul, a new mobile payments platform and a green value chain. 

While other lenders in the country posted slightly better results for the year, Société Générale Maroc registered a very strong financial performance in 2018. The bank registered an 18% rise in net profits, and a 15% growth in assets, including a 10% rise in Tier 1 capital. Return on equity rose to 10% from 9% in 2017, even as the bank’s cost-to-income ratio edged up from 50% to 51%. 

Société Générale Maroc embarked on an ambitious restructuring in 2018, formalised by a new strategic plan – Future 2019-2022 – an organisational overhaul that empowers regional divisions, and a new brand platform. 

The bank’s new structure is geared towards “shifting the mindset of the whole organisation towards co-operation for the benefit of customer satisfaction”, says Ahmed El Yacoubi, CEO of Société Générale Maroc. “We will embody a sustained difference with our culture, fostering trust as we make our values and ethics embodied in our actions.”

December 2018 saw the rollout of the bank’s So Pay mobile payment platform, feeding into a nationwide initiative by Morocco’s central bank and telecoms sector to boost financial inclusion and encourage the growth of digital payments. 

Société Générale Maroc has also sought to boost the country’s small and medium-sized enterprises (SME) sector, launching a credit line of green value chain financing for SMEs operating in the industrial ecosystems, in collaboration with the European Bank for Reconstruction and Development. 

Mozambique, Millennium bim

The effects of cyclones Idai and Kenneth took toll on Mozambique in 2019, with thousands of lives lost and many more displaced, putting a damper on the country’s economic recovery following the loans scandal of 2016.

The judges awarded the title of Bank of the Year to Millennium bim thanks to improvements in the bank’s asset base and profitability, together with the landmark launch of its WhatsApp banking service and its partnership with mobile money pioneer M-Pesa. 

Millennium bim’s asset base grew by 10.3% in 2018, compared with just 0.9% in 2017, with its Tier 1 capital position improving by 17.1%. The lender’s net profits, meanwhile, rose by 14.2%. 

Key ratios were mixed, with return on equity falling to 22.4% in 2018 from 23.6% in 2017, and the lender’s non-performing loan ratio edging up to 5.3% from 5% previously. Efficiency continued to improve, however, with the cost-to-income ratio falling to 38.96% from 39.8%.

In December 2018 the lender announced a partnership with M-Pesa, the Kenyan mobile banking pioneer, enabling customers to make mobile money transfers between the two platforms from their mobile phones, without needing to visit a branch. 

Then in May 2019, the bank became one of the first in Africa to launch banking services on WhatsApp on its existing IZI platform. IZI on WhatsApp offers functions including balance and transaction checks, withdrawals and airtime top-ups. 

“By ensuring we have the best professionals, we have become market leaders in balance sheet strength, capital adequacy, efficiency, digitisation, security and innovation,” says José Reino da Costa, Millennium bim’s CEO. “We are focused on ensuring we provide services and products that exceed our customers’ expectations. Our ever-growing footprint keeps us close to the community.”

Namibia, Bank Windhoek

Namibia’s banks have so far largely weathered the impact of the country’s depressed economic climate, with lower commodity prices, declining rainfall and the woes of close trading partner South Africa miring the economy in recession since 2017. Nevertheless, lenders have not emerged unscathed, with bad loans increasing and return on equity slipping.

In a tough economic climate, Bank Windhoek is the standout performer, with the judges impressed by a decent showing financially, as well as the issuance of a landmark green bond.  

Like Namibia’s other lenders, Bank Windhoek’s asset quality deteriorated in 2018, its non-performing loan ratio rising to 2.76% in 2018 from 1.44% in 2017. However, this figure remains well below the sector average of 3.6%, and comfortably below the central bank’s benchmark of 4%. Net profits rose 2.76% in 2018, with the bank’s asset base increasing by 8.64%. 

Bank Windhoek’s green bond, issued in December 2018, was the first of its kind to be issued in southern Africa. The bond, listed on the local stock exchange, raised N$66.6m ($4.47m) on a private placement basis, with the proceeds earmarked for domestic climate-related projects, including green buildings, renewable energy and sustainable transportation. 

Also noteworthy was the bank’s Women in Business product, launched in June 2018, designed specifically for the country’s female entrepreneurs and businesswomen.

“Our success is the result of the dedication, resilience and tenacity of the Bank Windhoek team,” says Baronice Hans, managing director of Bank Windhoek. “While building a strong and high performance culture, we also focus on being a responsible corporate citizen by giving back to the communities in which we operate.”

Nigeria, Access Bank

Access Bank became Nigeria’s largest bank by both customers and assets in 2019, following its acquisition of rival Diamond Bank, which was approved by authorities in March. Such a milestone was just one factor that led the judges to select Access Bank as Nigeria’s Bank of the Year, with the lender’s impressive financial numbers and ambitious expansion plans catching the eye. 

After a 13% drop in profits in 2017, Access Bank bounced back with a 53% rise in 2018. Assets rose by 21% over the period, with Tier 1 capital increasing by 15%. Return on equity grew to 19% from 12.4%, while the bank’s non-performing loan ratio dropped to 2.5% from 4.8%. 

Using its unified payments gateway, Access Bank launched its AccessAfrica payments solution in 2018 in Nigeria and six other markets across the continent. More than 3000 cross-border payments were processed in 2018, with the bank targeting more than 100,000 payments by the end of 2019. 

The judges also took note of Access Bank’s issuance of a N15bn ($41.3m) green bond, Nigeria’s first, in March 2019. The issue forms part of the lender’s environmental, social and governance commitments, which includes the analysis of the social and environmental risks of financing activities and the measurement of its environmental footprint.

“Access Bank has recorded exceptional growth over the past few years, from being a small, unrecognised financial institution in Nigeria to becoming Africa’s largest retail bank by customer base,” says Herbert Wigwe, managing director and CEO at Access Bank.

“Through our approach, which includes a deep focus on supporting sustainability initiatives as well as leveraging innovation and technology to optimise our processes, Access Bank is well positioned to deliver on its promise to do more than banking.”

Republic of the Congo, UBA Congo Brazzaville

Economic growth returned to the Republic of the Congo in 2018, following the recession of 2016 and 2017. But while the International Monetary Fund forecasts growth of about 2% in 2019 on the back of expanded oil production, the economy remains fragile, with reforms desperately needed to support private sector growth. 

UBA Congo Brazzaville has again been selected as the country’s leading lender, with the judges noting the impressive recovery in the bank’s finances during 2018, as well as its trade finance and mobile money solutions.

After reporting an 18% drop in net income in 2017, the bank bounced back in 2018 with a 32% net profit rise. UBA Congo’s asset base staged a similar recovery, increasing 32% during the year, including a 19% rise in Tier 1 capital. Return on equity increased to 35% from 31%, while the bank’s cost-to-income ratio was unchanged at 54%.

UBA Congo has worked to position itself as the banking partner of choice for importers, by offering customised versions of international payment services such as Moneygram and Swift, as well as UBA’s own cross-border payment service, Africash.

On the consumer side, the bank partners with local telecommunication companies MTN and Airtel to offer the Mobile Money service, enabling customers to transact via their mobile phones.

“At UBA Congo Brazzaville, customer satisfaction is our passion,” says Vincent Ngimbock, UBA Congo Brazzaville’s managing director. “Our success is based on our teams’ dedication; [they] offer reliable, fast, 24/7, revolutionary banking services in our market.”

Rwanda, Ecobank Rwanda

The judges selected Ecobank Rwanda as the country’s Bank of the Year for 2019, impressed by its deeper partnership with mobile operator MTN and new products for cross-border remittances. 

After two years of decline, Ecobank Rwanda registered a 26.9% rise in assets in 2018, including an 11% rise in Tier 1 capital. Net profits rose 4.7% for the year, with return on equity hitting 6.51%, following two years in negative territory. 

Such improvements were accompanied by an improvement in the cost-to-income ratio to 72.13% in 2018, from 98.75% the previous year, while the bank’s non-performing loan ratio improved to 5.52%, from 21.51% in 2017. 

Ecobank Rwanda benefited from the group’s continent-wide alliance with mobile operator MTN, agreed in April 2018, to provide financial service capabilities to nearly 5 million of MTN’s customers in Rwanda. By leveraging mobile phone subscription data on the SIM card, Ecobank Rwanda and MTN can provide know your customer-lite onboarding via mobile phone, including to those who have not previously had a bank account.

In October 2018, Ecobank Rwanda launched its Rapidtransfer cross-border remittance app in a bid to tap into the country’s remittance market, worth $230m in 2018. The bank reported more than 100,000 downloads of the app in its first two months. 

“Rwanda has one of the most expensive transaction costs for cross-border remittance corridors in the world (17% from Tanzania), and our new Rapidtransfer app has slashed this to 3% or less, delivering affordability and convenience,” says Alice Kilonzo-Zulu, Ecobank Rwanda’s managing director. “We constantly strive to meet the evolving needs and expectations of our customers,” she adds.

Senegal, Orabank Senegal

Orabank Senegal has been selected as the country’s top lender for the second consecutive year, thanks to impressive financial results and a series of innovations in its corporate banking offering in particular. 

The lender was awarded a contract to provide a comprehensive payments solution to the CDC, the government’s arm responsible for centralising compulsory deposits, one of the largest tenders of its kind. Such deposits can exceed CFA Fr100bn ($167.8m). The initial pilot phase of the project was completed in June 2019. 

Orabank Senegal launched a new cheque clearing solution for corporate clients in September 2018, with cheques still accounting for 90% of corporate payments in the country. The solution, which enables clients to clear cheques from their own office premises, has been implemented for major clients including the country’s power distribution company, the CDC, and a global maritime logistics company.

On the advisory side, the bank acted as sole agent of the buy-out and repacking of the whole senior debt of Terrou BI, Senegal’s largest five-star hotel and resort. It was also involved in local telecommunications company Tigo’s buy-out from Millicom and 4G ramp-up, with the largest banking contribution in a package of senior debt and two-year confirmed letters of credit for suppliers. 

Orabank Senegal suffered a 27% drop in profits in 2018, due to a non-recurring tax expense covering 2014 to 2017. Profitability has subsequently recovered, however. The bank registered a 37% rise in its asset base in 2018, including a 17% increase in Tier 1 capital. While return on equity suffered, efficiency is on the increase, with the cost-to-income ratio falling to 61% in 2018 from 67% the previous year. The bank’s non-performing loan ratio edged up slightly in 2018 to 2.75% from 2.66%. 

Sierra Leone, UBA Sierra Leone

UBA Sierra Leone has displaced the competition to be awarded the crown for the country’s top lender. Its financial performance alone would have secured it the top spot, but the bank has also recorded advances in key areas including government financing contracts and updates to its core systems. 

UBA Sierra Leone has increased its finance partnership with government and state institutions, with highlights including a cross-currency swap transaction with the government to facilitate road construction and electricity distribution projects, and $12.5m-worth of financing for the expansion of the Institute of Public Administration and Management at the University of Sierra Leone. 

The bank has also invested in straight-through processing between its core banking application and international payments network Swift, enabling customers to receive e-mail alerts once transfers on the platform are completed. 

The lender posted a 37% rise in net profits in 2018, a 12% growth in assets and a 14% increase in Tier 1 capital. Key metrics all travelled in the right direction during the year; return on equity increased to 31.4% from 28.1% in 2017, the cost-to-income ratio improved to 41% from 44.6%, while the bank’s non-performing loan ratio improved to 0.29% from 0.56%. 

“We are very excited that UBA Sierra Leone has won the coveted Bank of the Year award for 2019,” says UBA Sierra Leone’s CEO and managing director, Chinedu Obeta. 

“Our strength lies in our people, technology and excellent customer service delivery. These three levers have been our cutting edge over our peers and competitors and towards the provision of superior banking services and promoting financial inclusion in Sierra Leone.”

South Africa, Standard Bank

The challenges facing South Africa mounted significantly in 2019, culminating in both S&P and Fitch downgrading the country’s debt to junk status. The International Monetary Fund expects the economy to grow by just 1.8% in 2019, plagued by insolvent state-owned companies, rising debt and one of the world’s highest unemployment rates.

Standard Bank, the judges’ choice for the country’s Bank of the Year for 2019, has responded to these challenges by heavily investing in both its internal systems and its client-facing digital offerings, while increasing its shareholdings in operations elsewhere on the continent. 

The bank selected Amazon Web Services (AWS) as its preferred cloud provider in March 2019, with a view to leveraging AWS services, including data analytics and machine learning, to both automate the bank’s internal financial operations and enhance customer-facing web and mobile applications. The bank also announced a strategic partnership with Microsoft to provide cloud services for the bank’s internal corporate functions, such as treasury, finance, employee productivity and human resources.

Among the client-facing digital offerings unveiled in 2019 was SimplyBlu, a Mastercard-powered solution that enables South African small businesses to trade online at a low cost, while not sacrificing security concerns. SimplyBlu users can accept payment from domestic and international credit, debit and prepaid cards, and take advantage of same-day settlement into a Standard Bank account, with online stores manage-able via the SimplyBlu app.

“We think that Standard Bank’s South African and Africa-wide network is unmatched in its breadth, depth and robustness – and we work hard to ensure that all our capabilities are at the service of our clients, 24/7, 365 days a year, on digital channels or in person,” says Sim Tshabalala, chief executive of Standard Bank.

South Sudan, Equity Bank South Sudan

Equity Bank South Sudan is the winner of the inaugural award for Bank of the Year for the world’s youngest country. The business and banking climate in South Sudan is one of the most challenging in Africa, with high inflation and strong currency depreciation. Many banks remain heavily undercapitalised and face rising non-performing loan rates, according to the International Monetary Fund. 

Amid such challenges, Equity Bank South Sudan has adapted admirably to the situation on the ground, while registering impressive financial results in the process. The bank managed to trim its NPL ratio to 14.32% in 2018, down from 70.56% the previous year. Profits rose by 240.51% in 2018, with assets increasing by 26.1%, including a 10.1% rise in Tier 1 capital. 

Faced with the challenges of operating physical branches in a country with little infrastructure (not to mention fierce fighting that largely ceased in September 2018), Equity Bank South Sudan has broadened its agent network. This has served to both expand the reach of its services across the country and to improve efficiency. The lender’s cost-to-income ratio fell to 75% in 2018 from 99% the previous year. 

Equity Bank South Sudan’s various corporate social responsibility initiatives impressed the judges. Particularly noteworthy has been the bank’s support for more than 100 women groups with financing and financial literacy training, in collaboration with Indian aid group DMI. Through the programme, women are empowered to undertake economic activities, providing support for their families and helping secure access to education and other basic necessities. 

The bank has also supported the training of more than 300 local traders in the basics of book-keeping and scaling up businesses in a sustainable manner.

Sudan, Omdurman National Bank

Pressures on Sudan’s economy finally reached a head in the early months of 2019, when the impact of rising inflation and the slump in the Sudanese pound prompted a popular uprising, forcing president Omar al-Bashir from power. The prospects for 2020 are uncertain at best, as a coalition of civilian and military leaders seeks to restore confidence. 

In the midst of this turmoil, Omdurman National Bank has held its own to once again take the Bank of the Year award for Sudan; the bank’s profits and asset base increased by 110% and 168%, respectively, in 2018, representing impressive increases even when the impact of the depreciation of the local currency is factored in. Return on equity improved to 44.4% in 2018 from 32.8% in 2019, while the bank’s non-performing loan ratio improved to 2.38% from 3.25%. 

Omdurman National Bank invested heavily in its internal processes throughout 2018 and 2019, introducing a new human resource management system and a new procurement management system.

The bank has also made significant strides in boosting the adoption of its digital products and services, thanks to a new marketing policy. The result has been a doubling of both the number of users of banking services via messaging systems and users of the bank’s Omdurman app. 

“The key ingredients for our success are human resource efficiency and management effectiveness, capital efficiency, and the implementation of our financial inclusion strategy,” says Dr Abdelhameed Mohammed Jameel, Omdurman National Bank’s general manager.

Tanzania, CRDB Bank

Tanzania’s banking sector has recently enjoyed a period of stability following the difficult years of 2016 and 2017, when impairments for bad loans rose after lower commodity prices dragged down the economy. Nevertheless, the country’s economy remains precarious going into 2020, with erratic government policy putting off foreign investors, with a predicted drop in gold prices set to hurt export revenues. 

In a competitive contest, CRDB Bank has emerged as Tanzania’s Bank of the Year, thanks to solid financial results, the expansion of its agent network, and improvements in its digital offering. 

CRDB’s financial results showed improvements across the board, led by a 77.1% rise in net profits for 2018. The bank’s asset base rose by 2.3%, with Tier 1 capital increasing by 5.4%. Return on equity increased to 8.3% in 2018 from 4.9% in 2017, while the non-performing loan ratio fell to 8.5%, from 12.6%. 

The bank has expanded its agent network significantly in a bid to both boost financial inclusion and keep costs under control. By the end of 2018 the bank’s agent network had reached 5457, with more than 248,000 accounts opened by the network during the year, boosted by the introduction of online account opening.

“Winning the Bank of the Year award is a testimony to a solid indication of our zeal to maintain our position as the leading bank in Tanzania,” says Abdulmajid Nsekela, CEO and managing director of CRDB Bank.

“Our growth is attributed to the strong results of our transformation strategy which has begun to yield fruit.”

Togo, Orabank Togo

Orabank Togo has, for the second year in a row, been crowned Bank of the Year for the west African country, which has made significant progress in improving its overall business climate. In addition to growth in profitability and assets, the judges noted the lender’s expansion of its agricultural finance business, and the launch its new multi-service digital banking platform. 

The lender posted an 11.86% rise in net profits for 2018. While its asset base grew by 16.25%, Tier 1 capital fell by 15.23%. Both return on equity and cost to income remained high in 2018, but posted improvements compared with 2017. 

Orabank Togo’s greater push into the financing of agriculture (which accounts for roughly 40% of the country’s gross domestic product) saw it become the first partner of the government’s Incentive Mechanism for Agricultural Financing, providing some CFA Fr847m ($1.42m) of financing for the country’s rice value chain.

In July 2019 the bank launched its Keaz digital platform for retail, corporate and institutional customers, providing a common platform on the internet, at ATMs and on smartphones and feature phones. 

Services available over the platform include the payment of utility bills, person-to-person payments, money transfers and electronic wallet services that allow card-free withdrawals at ATMs.

Tunisia, Union Internationale de Banques

Lenders in Tunisia remain under pressure in late 2019, with economic growth remaining weak despite a series of government reforms. Against this backdrop, Union Internationale de Banques (UIB), majority owned by Société Générale, is the judges’ choice for the country’s Bank of the Year, with the lender’s commitment to digital innovation and the small and medium-sized enterprises (SME) market complementing a solid financial performance in 2018. 

UIB recorded a 24% rise in net profits in 2018, a higher percentage growth than those recorded in the previous two years. While asset growth at 12% represented a slowdown in growth compared with previous years, the bank’s Tier 1 capital increased by an impressive 20.3%. 

Return on equity rose to 23%, from 22.2% in 2017, while the cost-to-income ratio improved to 46.5% from 46.6%. Significantly, the bank’s non-performing loan ratio continued to fall, dropping to 7.7% from 8.1% previously. 

Over the review period, UIB has intensified its focus on business banking, focusing particularly on SMEs, in a bid to complement its traditional strength in the retail segment. By the end of 2018, the bank had recorded a 38% year-on-year rise in business flows, and a 31% rise in trade flows. 

As part of its digital transformation strategy, in May 2019 UIB launched its new Omnicanal mobile and internet banking solution offering a unified interface on both channels, with new features including budget management and the access of credit files. The new mobile app has been downloaded more than 100,000 times so far in 2019. 

“This award testifies above all to the expertise of all our employees and their daily commitment to the satisfaction of our customers, and our progress in the positive transformation of our processes and channels,” says Mondher Ghazali, CEO at UIB.

Uganda, Equity Bank

In a competitive category, Equity Bank has emerged as Uganda’s Bank of the Year, with the judges impressed not only by its solid financial performance, but also by its bespoke banking services for the country’s refugee community. 

While Equity Bank’s growth numbers for 2018 fell short of 2017 figures, the bank registered a still impressive 15.47% increase in net profits for the year, alongside a 14.13% growth in its assets, including a 40.22% rise in Tier 1 capital. 

The slower growth in profits saw the bank’s return on equity drop from 37.1% to 22.3% in 2018. However, Equity Bank’s asset quality saw a significant improvement over the period, with its non-performing loan ratio dropping to 1.8% from 4.4%. The bank also maintained its recent efficiency gains, its cost-to-income ratio falling to 65.4% in 2018 from 65.6% in 2017. 

Judges were impressed by Equity Bank’s partnership with UN agencies to digitise payments made to Uganda’s 1.2 million refugees. Accounts are opened for the refugees, most of whom have fled the conflict in neighbouring South Sudan, with money for different services deposited via a transfer that is done by the funding of the UN agency. The refugees can then go and withdraw that money at an agent point to purchase commodities.

Refugees with mobile phones are onboarded onto the Eazzy Banking digital platform, which they can use to make payments without handling cash. 

“In our bid to socially and economically transform the lives and livelihoods of our clients, the bank has primarily focused on the deployment of innovative financial solutions through world-class digital and agency banking channels that enhance financial inclusion and deepen financial access,” says Samuel Kirubi, managing director of Equity Bank Uganda.

Zambia, Stanbic Bank Zambia

Stanbic Zambia held off stiff competition to once again emerge as the country’s top lender, thanks in no small part to its significant innovations in digital lending and agricultural monitoring technology. 

The lender launched digital lending in June 2019, cutting the application process for new loans from up to five days to less than a minute, eliminating the paperwork previously required, while significantly reducing costs. Initially launched for existing lenders seeking top-up loans, the service is gradually be extended to new borrowers, and will subsequently be offered to the small and medium-sized enterprise community. 

In May 2019 the bank launched its Contour app for its farmer clients. The app uses agricultural satellite imaging and analysis to give farmers satellite data, crop growth models, soil analysis mapping, independent fertiliser recommendations and weather data.

Farmers with the app can share the information they get about their crops with advisers and input suppliers as well as Stanbic itself, enabling the bank to have a clearer insight of what is happening on the ground, which can help the bank to improve its services to farmers.

Among other innovations introduced was E-market Trader, an advanced electronic foreign exchange trading platform, which brings together real-time pricing, trade execution and post-trade services on a single web-based platform. 

On top of such innovations, Stanbic Bank Zambia had another impressive financial year in 2018, with net profit increasing by 30%. Assets rose by 25.4%, including an 11.96% rise in Tier 1 capital. Return on equity rose to 25.9%, from 20.6% in 2017, while the cost-to-income ratio improved to 59%, from 62.82%. 

While the bank’s non-performing loan ratio rose to 6.55% in 2018 from 5.28% in 2017, this figure remains far below the sector-wide average of 11% at the end of 2018. 

Zimbabwe, Stanbic Bank Zimbabwe

Zimbabwe’s short-lived recovery of 2017 is now a distant memory. The government expects the economy to shrink by 6.5% in 2019, making it Africa’s poorest performer by some distance, due to factors including soaring inflation, shortages of foreign currency and rolling power cuts. 

Such conditions present formidable obstacles for the country’s banks, but Stanbic Bank Zimbabwe has still managed to post impressive results which, combined with its continued embrace of digital, sees it crowned as Bank of the Year for Zimbabwe in 2019. 

Stanbic posted an impressive 42% growth in net profits during 2018, just two years after seeing its annual profits fall 11%. While asset growth has slowed, it still registered a 26% growth for the year, with a 22% rise in Tier 1 capital. Return on equity increased to 26%, from 22% in 2017, while the lender’s non-performing loan ratio fell for the second consecutive year, hitting 1.7% in 2018. 

As with many other lenders across the continent, Stanbic has moved to grow its agent network as a means of deepening financial inclusion while keeping costs low. Point-of-sale deployments grew by 59% in 2018, with revenues from digital channels growing by 77%. By the end of 2018, the bank had achieved a digitisation level of 94%. In May 2019, Stanbic launched remote account onboarding, reducing the time taken to open an account from 14 minutes to just four. 

“Stanbic Bank Zimbabwe is an authentic brand whose success is bolstered by exceptional corporate governance and its focus to deliver value to all stakeholders,” says Joshua Tapambgwa, chief executive at Stanbic Bank Zimbabwe.  

“Innovation has been critical to ensure the institution thrives in an uncertain economic environment, coupled with the dedication and tenacity of [our] employees.” 

PLEASE ENTER YOUR DETAILS TO WATCH THIS VIDEO

All fields are mandatory

The Banker is a service from the Financial Times. The Financial Times Ltd takes your privacy seriously.

Choose how you want us to contact you.

Invites and Offers from The Banker

Receive exclusive personalised event invitations, carefully curated offers and promotions from The Banker



For more information about how we use your data, please refer to our privacy and cookie policies.

Terms and conditions

Join our community

The Banker on Twitter