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 |