Africa’s leading economies faced adverse conditions over the 2016 review period, as low commodity prices continue to shake the continent’s growth trajectory. Dealing with a shortage of foreign exchange, heightened political risk and volatile currencies, the performances of some regional lenders have suffered. Yet, as the rankings demonstrate, this is not a one-dimensional story. In some cases, African lenders have improved on their positions in the Top 1000 ranking, helped in part by prudent growth strategies and diversified business models.
South Africa’s Standard Bank Group once again tops the regional table with $8.6bn in Tier 1 capital. This represents a 15% increase from the 2016 ranking, accompanied by a notable jump in the global table from 160 to 149. Rounding out the top three positions are fellow South African lenders FirstRand and Nedbank, second and third, respectively. FirstRand’s Tier 1 marginally decreased over the review period, dropping by 3.8%. Conversely, Nedbank posted a 24.7% gain.
Outside the top three banks, which have remained static in the regional table, some notable movements have occurred. Of particular note is National Bank of Egypt’s climb to fifth place with $3.2bn in Tier 1 capital. This puts the bank at number 301 in the global ranking, up from 366 in the last year’s rankings. Nigeria’s Zenith Bank has fallen from seventh place last year to 10th in the 2017 Africa table. This follows a 25% fall in the bank’s Tier 1 capital, largely attributable to the poor performance of the naira over the review period. Indeed, every Nigerian lender in the 2017 ranking experienced a significant reduction in Tier 1 capital.
Africa’s highest movers table is dominated by lenders from South Africa. In total, four banks make the top 10 in 2017, pointing to the strengthening of the rand in the latter half of the review period as well as the diversified, sophisticated business models over which these banks preside. Other notable improvements came from Angola’s Banco Angolano de Investimentos, which posted a 22% increase to its Tier 1 capital.
Among the top five banks by return on capital, three Egyptian lenders have risen to the fore. State-owned National Bank of Egypt scoops the top spot with 66.8%. Commercial International Bank (CIB), a private lender, comes in second with 55.9%. In third place is Banque Misr on 53.3%. Rounding out the top five are Angola’s Banco BIC and Nigeria’s United Bank for Africa, with 44% and 42%, respectively.
