The Banker’s Top 100 African Banks ranking for 2020 shows a stabilisation in the finances of the majority of African major lenders. However, this is the calm before the storm, with Covid-19 restrictions and lower commodity prices set to take their toll on lenders in key African markets, such as South Africa, Nigeria and Angola, this year.
After a difficult 2018, South Africa’s big four all reported growth in their assets and capital positions in 2019, even as operating conditions in their home market continued to tighten through the year. Standard Bank cemented its position as the continent’s largest lender with an 8.2% increase in Tier 1 capital, compared with a 3.7% drop the year before. Second-placed FirstRand came ahead of its South African counterparts in terms of profitability, with a return on assets of 1.9%, while third-placed Absa was the best performer in terms of capital growth – its Tier 1 position improving by 13.5%.
