07 July 2014, Lagos – As a measure of the strength of Nigerian banks, 13 of the nation’s banking groups were listed among the top 1000 banks in the world by The Banker magazine of the Financial Times Group, the highest ever since the global financial crisis.
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.
Also, Nigeria has eight slots in the 25 top banks in Africa from the ranking, while United Bank for Africa is the only Nigerian bank in the top 10 highest movers on the continent.
The 13 Nigerian banks on Tier-1 capital basis, according to a statement by The Banker’s Country Representative – Nigeria, Kunle Ogedengbe, are 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 is ranked top in Nigeria at 293 as Guaranty Trust is on number 415, First Bank on number 424, Access Bank 532, United Bank for Africa ranked 539 and Fidelity 622.
Profit on capital of three Nigerian banks that are not foreign-owned subsidiaries increased. These are First Bank that has its profit on capital increased to 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.
The statement quoted the magazine’s editor, Brain Caplen, as saying 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 added 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.
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 $400 million. This has almost doubled since the 2005 ranking”, he added.
*Kingsley Ighomwenghian – Daily Independent