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Standard Bank’s reign continues as African lenders catch a break

African lenders regained ground in 2022’s rankings, even as challenges mount in key markets. John Everington reports. 
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Despite slower vaccination rollouts and reopenings than elsewhere in the world, African economies bounced back in 2021, providing a much needed boon for lenders. Alongside a near uniform rebound in profitability, all but one of the largest 25 African lenders in The Banker’s Top 1000 World Banks ranking for 2022 posted an increase in Tier 1 capital, in many cases ahead of their peers elsewhere. An impressive 18 of the continent’s 25 largest banks gained places in the overall rankings for the year.

Yet despite several strong individual performers, the pre-pandemic growth boom witnessed almost across the board by banks in markets such as Nigeria, Morocco and Egypt has yet to return, with economic challenges — not least those thrown up by the war in Ukraine — likely to dampen growth in the short term at least.

South Africa’s Standard Bank remains the continent’s largest lender in 2022 — a position it has held for more than 20 years. The only one of the country’s big four to have witnessed growth in 2020, the bank posted a marginal increase (5.1%) in its Tier 1 capital base in 2021, remaining unchanged at 157th position in the overall ranking.

The country’s second-largest lender, FirstRand, was the country’s big gainer in the main ranking for 2022, rising 30 places on the back of a 35.1% increase in Tier 1 capital, benefiting from the fluctuation of the appreciation of the rand during its reporting period. After leapfrogging South Africa’s Nedbank in last year’s table, National Bank of Egypt (NBE), the continent’s fourth-largest lender, posted a 9.7% increase in its Tier 1 capital in 2021, helping it to narrow the gap between it and third-placed Absa in the 2022 table.

While NBE’s growth lifts it 13 places to 215th in the overall ranking, the rise is sharply lower than that recorded in previous years, as Egypt’s recent economic boom finally shows signs of slowing. Only one of the country’s five largest lenders — third-largest Commercial International Bank — recorded double-digit Tier 1 capital growth in 2022’s rankings.

Growth was similarly muted at Morocco’s largest lenders, Attijariwafa Bank and Groupe Banques Populaire, even as the economy recovered significantly in 2021. Morocco and Egypt are especially vulnerable to higher fuel and food prices prompted by the war in Ukraine, with Egypt requesting support from the International Monetary Fund in March.

The emerging crisis is set to have a more benign impact on Nigeria’s economy — and Africa’s largest — providing a further boost to the country’s oil revenues. Zenith Bank remains the largest African lender, its Tier 1 capital increasing by 4.2% during the year. Yet it is second-placed Access Bank (which in March became Access Holdings) that is Africa’s biggest gainer in the 2022 ranking, thanks in no small part to a series of acquisitions around the continent. The bank posted a 45.2% increase in Tier 1 capital in 2021, which saw it rise four places to 14th place in Africa’s top 25, and a whopping 131 places to 499th position in the overall Top 1000.

Africa top 25 banks ($m)

Country rank World rank Bank Country Tier 1
1 157 Standard Bank Group South Africa 11,727
2 170 FirstRand South Africa 10,464
3 199 ABSA Group South Africa 8,238
4 202 National Bank of Egypt Egypt 7,972
5 254 Nedbank Group South Africa 5,887
6 261 Banque Misr Egypt 5,700
7 292 Attijariwafa Bank Morocco 5,143
8 307 Groupe Banques Populaire Morocco 4,835
9 341 CIB Egypt Egypt 4,021
10 375 Afreximbank Egypt 3,577
11 401 Investec South Africa South Africa 3,282
12 460 Zenith Bank Nigeria 2,750
13 463 Bank of Africa Morocco 2,713
14 499 Access Bank Nigeria 2,255
15 544 Arab African International Bank Egypt 2,044
16 547 Capitec Bank Holdings South Africa 2,027
17 598 Guaranty Trust Bank Nigeria 1,713
18 609 MCB Group Mauritius 1,683
19 618 Ecobank Transnational Togo 1,632
20 683 KCB Group Kenya 1,382
21 695 United Bank for Africa Nigeria 1,341
22 715 First Bank of Nigeria Nigeria 1,262
23 736 Equity Bank Kenya 1,200
24 759 Banque du Caire Egypt 1,116
25 797 Crédit Agricole du Maroc Morocco 995

Africa highest movers

Country rank World rank Bank Country Tier 1 % ch Tier 1 $m
1 913 Banco Angolano de Investimentos Angola 67.58 706
2 499 Access Bank Nigeria 45.23 2,255
3 170 FirstRand South Africa 35.09 10,464
4 715 First Bank of Nigeria Nigeria 29.61 1,262
5 871 Banco BIC Angola 19.13 809
6 695 United Bank for Africa Nigeria 13.58 1,341
7 961 African Bank South Africa 13.41 629
8 341 CIB Egypt Egypt 11.91 4,021
9 759 Banque du Caire Egypt 11.83 1,116
10 618 Ecobank Transnational Togo 11.5 1,632

Africa top five ROC

Country rank World rank Bank Country Return on capital (%)
1 951 Banco de Fomento Angola Angola 43.75
2 913 Banco Angolano de Investimentos Angola 36.11
3 817 CBE Ethiopia 32.78
4 736 Equity Bank Kenya 29.52
5 715 First Bank of Nigeria Nigeria 29.13

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John Everington is the Middle East and Africa editor. Prior to joining The Banker, John was the deputy business editor of The National in the UAE, and has also worked for Dealreporter, Arab News and The Telegraph. He has also covered the telecom sector in Africa and the Middle East, living and working in Qatar and the UK. John has a BA in Arabic and History and an MA in Middle Eastern Studies from the School of Oriental and African Studies (SOAS) in London.
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