31 African Banks made Top 1000 amid frailty in currencies
Category: Money Market
Saturday, July 14, 2012 / Proshare News
*** Zenith Bank Plc, First Bank of Nigeria, GT Bank, Access Bank Plc and UBA Plc make up top 5 Nigerian banks in the ranking @ 322 – 563 globally.
While European banks count the cost of the Eurozone sovereign debt crisis, China is leading the emerging markets into a new era of banking dominance. Africa’s response to managing its economies amid frailty in currencies allows it to make first entry at 121.
It is worthwhile therefore to appraise the place of the Nigerian, nay African banks in the recently released Top 1000 banks of the world by the Bankers Magazine – where only thirty-One banks featured this year as against thirty in last year’s ranking.
The Banker’s Top 1000 World Banks ranking of ‘banks holding companies’ is usually based on Tier 1 capital. The rankings are based on definition of Tier 1 capital as outlined by Basel’s Bank for International Settlement (BIS). This definition is stricter than the total stockholders’ equity and spans only the core of the bank’s strength.
The review is regularly carried out to show banks’ soundness in relation to the Basel’s guidelines on capital adequacy and Financial Accounts are expected to be made available in conformity with both the International Financial Reporting Standards (IFRS) - the national accounting standards; while ‘Pre-tax profit’ is used as the main yardstick for measuring banks’ performances.
Reviewing the list of the top 10 African banks, the frail state of African currencies this year excluded all African lenders from the top 100 banks. Although the Standard Bank of South Africa managed to be ranked as 112th after a rise by 12% in local currency in 2011; the fall in assets from $201bn to $183bn made it to drop from its previous 94th position to its current rank.
Three other South African banks, First Rand (ranked 121); Nedbank Group (ranked 178) and Investec (ranked 280) stand as the leading African banks on the list of the 1000.
Next on the top 10 African lenders list are two Moroccan banks - Groupe Banques Populaire (ranked 286) and Attjariawafa Bank (ranked 308). They are immediately followed in the African table by two Nigerian Banks - Zenith Bank (ranked 322) and First Bank of Nigeria (ranked 338).
Others on the top 10 are the National Bank of Egypt (ranked 378) and BMCE Bank Group, Morocco.
Zenith Bank Plc was adjudged a clear leader for the country. Watch Video
In general, the Nigerian banks did not ascend the Tier 1 ranking significantly but the merger and acquisition exercise carried out seem to have aided some of the banks found on the top 1000 this year.
An instance is that of Access Bank which ranked 541st with $1,054m in Tier 1 capital. The increased asset by 93% ($10.3bn) can be significantly attributed to the acquisition of the Intercontinental Bank. Additionally, in terms of assets, Ecobank Transnational Corporation’s (ETI) acquisition of Oceanic Bank earned ETI a change from the 609th position to the 498th rank.
Global Ranking – Some Data
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