13 Nigerian banks make top 1000 world ranking, lead Africa

For the second consecutive year, 13 Nigerian banks have made the list of Top 1000 World Banks ranking.

The 13 Nigerian banks underline Nigeria’s number one position in Africa as no other African country recorded up to 13 in the top 1,000 world banks.

Published by The Banker Magazine of the Financial Times Group London, in its 2014 edition the ranking, revealed that banks in the world for the first time since the global financial crisis had returned profit of $920 billion, which is 23 per cent more than their previous peak of $786 billion achieved in 2007 before the financial crisis.


According to a release by the Country Representative Nigeria of the publication, Mr Kunle Ogedengbe, the Nigerian banks, based on Tier-1 capital were Zenith Bank, Guaranty Trust Bank, First Bank, Access Bank, United Bank for Africa, Fidelity Bank and Ecobank Nigeria.

Others are Skye Bank, First City Monument Bank, Diamond Bank, Stanbic IBTC Holdings, Standard Chartered Bank Nigeria and Union Bank of Nigeria.

Zenith Bank ranked top in Nigeria at 293 as Guaranty Trust is on number 415 and First Bank clinched the 424th position.

Access Bank was on number 532, United Bank for Africa ranked 539 and Fidelity 622. It revealed that profit on capital of three Nigerian banks that were not foreign-owned subsidiaries increased. These are First Bank that has its profit on capital increased by 25.32 per cent from 25.13 per cent, Access Bank from 21.19 per cent to 21.24 per cent and First City Monument Bank 15.77 per cent from 15.07 per cent.

Editor of the magazine, Mr Brain Caplen, noted that the 23 per cent increase in profit of global banks from 2007 “is a good news but the better news is that capital has also increased at a reasonable pace whereas assets have stayed flat.

“This means that returns on capital are only slightly improved but the hope is that this upturn is more sustainable than the last one,” he said.

Caplen disclosed that a large proportion of the profit is from China – about 32 per cent of the total which is more than the next three highest profit countries of USA, Japan and Canada combined.

Of the 25 top banks in Africa from the ranking, the highest of eight is from Nigeria, the largest economy in the continent while the United Bank for Africa is the only Nigerian bank in the top 10 highest movers in Africa.

In all, Africa has 31 banks in the Top 1000 World Banks 2014 with Nigeria having 13 representing 41.94 per cent. The 31 African banks in the ranking are from nine countries: Nigeria, South Africa, Egypt, Angola, Gabon, Kenya, Mauritius, Morocco and Togo.

Globally, Senior Editor of the magazine, Philip Alexander stressed that banks in this 2014 ranking “are stronger than ever” as “the level of capital held by banks in this ranking continues to accelerate, with the minimum Tier 1 capital required to enter the Top 1000 World Banks now fast approaching $400million. This has almost doubled since the 2005 ranking”, he added.

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