Four Nigerian-owned banks have been recognised among the best banks in Africa, according to the latest 2024 World’s Best Banks report by Global Finance, a reputable monthly financial magazine.
The banks that made the prestigious list are UBA, GTCO, Access Bank, and Zenith Bank, with their operations spanning across Burkina Faso, Sierra Leone, Gambia, Ghana, and Nigeria.
The report said that “banks in Africa have recently been operating in challenging environments, owing to economic turmoil.
“The stress factor has been particularly elevated in big economies. Amid the harsh environment, African banks’ top leadership and management have demonstrated shrewdness and prowess.”
Global Finance’s report emphasised that the leadership and management of these banks have shown exceptional shrewdness and prowess in navigating through such turbulent times.
The economic growth in South Africa, for instance, has slowed significantly due to sluggishness in critical sectors such as mining, energy, logistics, construction, and trade, resulting in a decline to 0.6 percent in 2023 from 1.9 percent in 2022.
Despite these challenges, the recognised banks have managed to sustain their operations and continue to thrive.
According to the report, Standard Bank, recognised as the regional winner, led the financial sector with a significant 27 percent increase in headline earnings, rising to $2.3 billion from $1.7 billion.
The bank also saw its return on equity improve to 18.8 percent from 16.3 percent.
Zenith Bank, despite the economic challenges in Nigeria, managed to achieve remarkable growth.
The bank posted a 149 percent increase in profit before tax, reaching $368.4 million in the third quarter of last year, up from $146.3 million in the same period in 2022.
The report also highlighted the performance of UBA, which emerged as the winner in Burkina Faso and Sierra Leone.
The UBA has emphasised the importance of the Economic Community of West African States (ECOWAS) for regional development.
Demonstrating its commitment to this vision, UBA was a key backer and the official sponsor of the ECOWAS Mining and Petroleum Forum held in February, further solidifying its role in supporting regional economic initiatives.
“Ironically, Burkina Faso has joined with Mali and Niger to form a separate alliance and exited the bloc, to which it contributed about 8 percent of GDP.
“The country, together with Niger, also intends to leave the West African Economic and Monetary Union, whose members use the CFA franc, which is pegged to the euro. These developments are enormous threats to UBA.”
“GTBank is our winner as the Best Bank in the Gambia. The bank is not only using its extensive branch network to build partnerships with public bodies to collect revenue but is also deploying digital channels to increase retail market penetration,” they said.
“For Access Bank, the country’s winner, the impacts are already being felt, with net profits surging by 47.1 percent in Q3 to $34.4 million, up from $23.3 million in the same period of 2022.”
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