Global Finance lists 4 Nigerian-owned banks as key players in Africa’s economic landscape

• UBA, GTBank, Access Bank, Zenith Bank show resilience, adaptability across multiple countries

• Leadership, management get praise

Onome Amuge

A recent report by Global Finance, a globally renowned financial magazine, has recognised  four Nigerian-owned banks, United Bank for Africa (UBA), GTCO, Access Bank, and Zenith Bank, among the best performing financial institutions in Africa for the 2023 financial period.

According to the report, despite the challenging economic environments and economic turmoil in which African banks have been operating, these institutions spanning across Burkina Faso, Sierra Leone, Gambia, Ghana, and Nigeria, have displayed remarkable resilience and adaptability. The report also highlighted the banks’ leadership and management prowess in navigating turbulent times, with some even achieving record-breaking profits.

It stated: 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 commended the remarkable resilience of several Nigerian and Egyptian banks amid recent economic adversities, noting that despite local currency crises causing havoc in both countries, the banks have managed to not only sustain their operations but also achieve record-breaking profits.

The Global Finance report further highlighted the commendable leadership and management skills of South African banks in tackling the nation’s current economic challenges. It noted that even with the adverse effects of a notable slowdown across key industries such as mining, energy, logistics, construction, and trade, leading to a substantial decline in economic growth from 1.9 percent in 2022 to 0.6 percent in 2023, these institutions have displayed unwavering resilience in navigating through turbulent times.

As per the report, several African banks have managed to not only survive but thrive in the face of economic difficulties. Standard Bank, recognised as the regional winner, saw a noteworthy 27 percent increase in headline earnings, which rose to $2.3 billion from $1.7 billion. Additionally, the bank’s return on equity improved to 18.8 percent from 16.3 percent.

The report also highlighted Zenith Bank’s financial performance in Nigeria, with the bank achieving remarkable growth despite economic challenges. This saw the bank post a 149 percent  increase in profit before tax, amounting to $368.4 million in the third quarter of last year, up from $146.3 million in the same period in 2022.

Meanwhile, UBA emerged as the winner in Burkina Faso and Sierra Leone. The report also dwelled on the bank’s commitment to supporting economic development across Africa, especially the West African region where it emerged as the official sponsor of the 4th edition of the ECOWAS Mining and Petroleum Forum held in Cotonou, Benin, solidifying UBA’s role in promoting economic and social growth on the continent.

The banking report highlighted that despite Burkina Faso’s exit from the West African bloc, which the country contributed about eight percent of its GDP to, and its intention to leave the West African Economic and Monetary Union, UBA remains determined to continue its operations in the country.

The authors of the report noted that the  bank’s strategy in Burkina Faso is centred around cross-border payments, remittances, and trade finance, all of which are intertwined with membership in the two economic and monetary groupings. They noted further that the worsening political risks pose significant challenges to UBA’s operations in Burkina Faso, but the bank remains committed to soldiering on.

In recognition of their exceptional efforts, GTBank was named best bank in the Gambia, while Access Bank received accolades as the best bank in Ghana. The report highlighted the effective strategies employed by both banks that are driving growth and financial success.

According to Global Finance, GTBank leveraged its extensive branch network to create partnerships with public bodies, optimising revenue collection and demonstrating the bank’s commitment to collaboration. Additionally, the bank is seen to be focused on expanding its retail market presence by deploying innovative digital channels, positioning itself for sustained growth.

The authors also noted that Access Bank’s financial acumen is clearly evident in its Q3 2023 performance in Ghana whose economy is showing signs of stabilisation after a turbulent period. This is as the bank’s net profits rose by 47.1 percent year-on-year to $34.4 million from $23.3 million in the same period of 2022.