Abuja, Nigeria – Eight Nigerian banks have been ranked among the top 100 banks in Africa for 2024, according to the latest report by the African Business Magazine.
FBN Holdings emerged as the highest-ranking Nigerian bank, securing the 15th position with a capital base of $1.9 billion. Close behind are Access Bank and Zenith Bank, occupying the 16th and 17th positions, respectively.
Other Nigerian banks featured in the ranking include United Bank for Africa (UBA) at 20th position, Guaranty Trust Bank (GTB) at 27th, Ecobank at 42nd, Union Bank at 45th, and FCMB at 48th place.
South Africa’s Standard Bank Group retained its position as the top bank on the continent, a title it has held consistently over the years. The National Bank of Egypt maintained its place as the second-largest bank in Africa, a position it has secured for the past four years.
“The gap between these two leading banks has been narrowing, but Standard Bank still stands out with a Tier 1 capital of $12.5 billion, which is more than two-thirds larger than the National Bank of Egypt, whose Tier 1 capital is $7.5 billion,” the report highlighted.
The report also noted the presence of other North African banking giants from Morocco, Algeria, and Tunisia in the rankings.
Impact of Naira Devaluation
The ranking revealed a drop in the positions of several Nigerian banks compared to their placements last year. First Bank, for instance, slipped from 14th to 15th, while Zenith Bank fell from 12th to 17th place.
The African Business Magazine attributed this development to the sharp decline in the value of Nigeria’s currency, the naira, against the US dollar. Since banks report their financials in their domestic currencies, the rankings, which are converted into USD, reflect the impact of currency fluctuations.
“Dramatic declines in Nigeria’s naira currency compared to the US dollar (USD) affect the rankings in this year’s table,” the magazine explained.
Financial Performance of Nigerian Banks
Despite the decline in rankings, several Nigerian banks reported strong financial results in the first half of 2024.
FBN Holdings, Nigeria’s oldest financial institution, posted a record half-year profit of N411.9 billion, more than double the N205 billion pre-tax profit reported for the same period in 2023. This was driven by a significant increase in interest income.
Access Holdings Plc, the largest Nigerian bank by total assets, recorded a pre-tax profit of N348.9 billion in the first half of 2024, a substantial rise from N167.6 billion reported during the same period last year.
Zenith Bank reported a pre-tax profit of N406 billion in the second quarter of 2024, a 370% increase compared to the N86.8 billion recorded in the same period in 2023. The growth was fueled by gains on its trading books, which soared to N871.6 billion for the first half of the year.
GTCO Plc posted the strongest second-quarter results of any Nigerian bank, with a pre-tax profit of N494.5 billion. Combined with the N509.3 billion pre-tax profit from the first quarter, GTCO’s total profit for the first half of 2024 surpassed the N1 trillion mark.
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