Four Nigerian-owned Banks Shine Among Africa’s Best

In 2024, four Nigerian-owned banks made it to the list of Africa’s best banks, as reported by Global Finance, a monthly financial magazine. This recognition highlights their success and resilience despite the challenging economic environment in Africa. 

The banks are UBA, GTBank, Access Bank, and Zenith Bank. Each has shown impressive growth and performance across different African countries.

UBA: A Key Player in West Africa

UBA, known as the United Bank for Africa, has made significant strides in Burkina Faso and Sierra Leone. UBA believes in the Economic Community of West African States (ECOWAS) as a vital foundation for development. In February, the bank was a significant supporter and the official sponsor of the ECOWAS Mining and Petroleum Forum.

However, UBA faces challenges due to political changes. Burkina Faso has joined Mali and Niger in forming a new alliance and left ECOWAS, contributing about 8% of GDP to the bloc. The country, along with Niger, also plans to exit the West African Economic and Monetary Union, which uses the CFA franc, pegged to the euro. These changes pose significant threats to UBA’s operations in the region.

Despite these challenges, UBA remains committed to its cross-border payments, remittances, and trade finance strategy in Burkina Faso. Despite worsening political risks, the bank is determined to continue its operations and growth.

GTBank: Leading in the Gambia

Guaranty Trust Bank, or GTBank, has been recognized as the best bank in the Gambia. The bank leverages its extensive branch network to build partnerships with public bodies to collect revenue.

GTBank is also focusing on digital channels to increase its reach in the retail market. This dual approach has helped GTBank maintain its leading position in the Gambian banking sector.

Access Bank: Thriving in Ghana

Access Bank has performed remarkably well in Ghana. The Ghanaian economy has stabilized after a difficult period, and Access Bank already feels the positive impacts.

In the third quarter of last year, the bank’s net profits surged by 47.1% to $34.4 million, compared to $23.3 million in 2022. This growth highlights Access Bank’s practical strategies and strong presence in Ghana.

Zenith Bank: Defying Economic Challenges in Nigeria

Zenith Bank has achieved significant profit growth despite Nigeria’s economic challenges. In the third quarter of last year, Zenith Bank posted a 149% increase in profit before tax, reaching $368.4 million, up from $146.3 million in 2022.

This impressive growth showcases Zenith Bank’s resilience and ability to thrive despite challenging economic conditions.

The Economic Environment and Its Impact

African banks have been operating in challenging environments due to economic turmoil. The stress level has been exceptionally high in large economies. However, the leadership and management of these banks have shown remarkable cunning and prowess. Instead of crumbling under pressure, many banks have remained resilient and posted record-breaking profits.

In Egypt and Nigeria, local currency crises have caused significant challenges. In South Africa, slow growth in key sectors like mining, energy, logistics, construction, and trade saw the economy grow by only 0.6% in 2023, down from 1.9% in 2022. Despite these difficulties, African banks continue to navigate the complex landscape successfully.

Standard Bank: A Regional Leader

Standard Bank, a regional winner, led the pack with a 27% increase in headline earnings, reaching $2.3 billion from $1.7 billion. The bank’s return on equity also rose to 18.8% from 16.3%. This performance highlights the strength and stability of African banks in challenging times.

Conclusion

These Four Nigerian-owned banks shine among Africa’s best. The recognition of UBA, GTBank, Access Bank, and Zenith Bank, among Africa’s best banks, is a testament to their resilience and strategic excellence.

These banks have not only navigated the demanding economic environment but have also achieved significant growth and success. Their stories show how strong leadership and innovative strategies can overcome challenges and achieve remarkable achievements.