South Africa’s financial institutions once again top the list for the African continent in The Banker’s Top 1,000 Banks global rankings.<\/p>\n
TheBanker.com’s 2014 list shows that South Africa\u2019s big three banks lead the rest of the African continent for profitability.<\/p>\n
Standard Bank tops the list in Africa with Tier 1 capital of $10.57 billion and pre-tax earnings of $2.9 billion. However, despite its top position, the bank slipped in the global rankings from 109th in 2013, to 116th in 2014.<\/p>\n
FirstRand (Including FNB) ranks second (152nd overall) with $7.83 billion in capital, while Nedbank ranks third (195th overall) with $5.11 billion.<\/p>\n
In 2013, the “big four” took the top for spots in the African list, but Absa as an individual bank has dropped off, as it now forms a complete part of the Barclays group. Absa would have been placed 3rd, ahead of Nedbank.<\/p>\n
Absa (Barclays Africa) has $5.9 billion in capital, according to The Banker.<\/p>\n
“South Africa\u2019s banking sector, Africa\u2019s largest in terms of Tier 1 capital and assets, has endured yet another tough year,” The Banker reported.<\/p>\n
“With the exception of FirstRand, all six of its lenders in Africa\u2019s top 25 ranking experienced falls in their dollar-denominated Tier 1 capital, reflecting the country\u2019s weak economic growth and the heavy depreciation of the rand, which lost 17% of its value versus the US currency in 2013.”<\/p>\n
Other South African banks which cracked the top 25 banks in Africa include Investec – ranked 7th (320th overall) – with capital of $2.64 billion; Capitec in 18th (678th overall) with capital of $882 million; and African Bank at 22nd (754th overall) with capital of $732 million.<\/p>\n
#<\/strong><\/td>\n| Bank<\/strong><\/td>\n | Country<\/strong><\/td>\n | Tier 1 Capital<\/strong><\/td>\n<\/tr>\n | 116<\/span><\/td>\n | Standard Bank Group<\/span><\/td>\n | South Africa<\/span><\/td>\n | 10,566<\/span><\/td>\n<\/tr>\n | 152<\/span><\/td>\n | FirstRand<\/span><\/td>\n | South Africa<\/span><\/td>\n | 7,825<\/span><\/td>\n<\/tr>\n | 195<\/span><\/td>\n | Nedbank Group<\/span><\/td>\n | South Africa<\/span><\/td>\n | 5,110<\/span><\/td>\n<\/tr>\n | 240<\/td>\n | Group Banques Populaire<\/td>\n | Morocco<\/td>\n | 3,804<\/td>\n<\/tr>\n | 259<\/td>\n | Attijariwafa Bank<\/td>\n | Morocco<\/td>\n | 3,509<\/td>\n<\/tr>\n | 293<\/td>\n | Zenith Bank<\/td>\n | Nigeria<\/td>\n | 3,114<\/td>\n<\/tr>\n | 320<\/span><\/td>\n | Investec South Africa<\/span><\/td>\n | South Africa<\/span><\/td>\n | 2,642<\/span><\/td>\n<\/tr>\n | 396<\/td>\n | Ecobank Transnational<\/td>\n | Togo<\/td>\n | 2,051<\/td>\n<\/tr>\n | 404<\/td>\n | National Bank of Egypt<\/td>\n | Egypt<\/td>\n | 1,994<\/td>\n<\/tr>\n | 407<\/td>\n | BMCE Bank Group<\/td>\n | Morocco<\/td>\n | 1,981<\/td>\n<\/tr>\n | 412<\/td>\n | Banque Misr<\/td>\n | Egypt<\/td>\n | 1,968<\/td>\n<\/tr>\n | 415<\/td>\n | Quaranty Trust Bank<\/td>\n | Nigeria<\/td>\n | 1,955<\/td>\n<\/tr>\n | 424<\/td>\n | First Bank of Nigeria<\/td>\n | Nigeria<\/td>\n | 1,865<\/td>\n<\/tr>\n | 532<\/td>\n | Access Bank<\/td>\n | Nigeria<\/td>\n | 1,267<\/td>\n<\/tr>\n | 535<\/td>\n | CIB Egypt<\/td>\n | Egypt<\/td>\n | 1,258<\/td>\n<\/tr>\n | 539<\/td>\n | United Bank for Africa<\/td>\n | Nigeria<\/td>\n | 1,249<\/td>\n<\/tr>\n | 622<\/td>\n | Fidelity Bank<\/td>\n | Nigeria<\/td>\n | 1,004<\/td>\n<\/tr>\n | 678<\/span><\/td>\n | Capitec Bank Holdings<\/span><\/td>\n | South Africa<\/span><\/td>\n | 882<\/span><\/td>\n<\/tr>\n | 679<\/td>\n | Bancode Poupancae Credito<\/td>\n | Angola<\/td>\n | 881<\/td>\n<\/tr>\n | 691<\/td>\n | Mauritius Commercial Bank<\/td>\n | Mauritius<\/td>\n | 856<\/td>\n<\/tr>\n | 747<\/td>\n | Skye Bank<\/td>\n | Nigeria<\/td>\n | 740<\/td>\n<\/tr>\n | 754<\/span><\/td>\n | African Bank<\/span><\/td>\n | South Africa<\/span><\/td>\n | 732<\/span><\/td>\n<\/tr>\n | 762<\/td>\n | Banco Angolanode Investimentos<\/td>\n | Angola<\/td>\n | 720<\/td>\n<\/tr>\n | 769<\/td>\n | First City Monument Bank<\/td>\n | Nigeria<\/td>\n | 708<\/td>\n<\/tr>\n | 785<\/td>\n | Banco BIC<\/td>\n | Angola<\/td>\n | 681<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n | In terms of profit generation, African banks make the highest returns on capital of 24% – double the average return for the rest of the globe and far exceeding average returns of only 4% in Europe.<\/p>\n “This is despite African banks holding less than 1% of global capital,” The Banker said.<\/p>\n Globally, China’s banks moved up the rankings to supplant US banks in first and second biggest banks in the world by capital.<\/p>\n ICBC is ranked as the world’s biggest bank with $207.6 billion in tier 1 capital, while China Construction Bank ($174 billion) climbed from 5th position in 2013 to second in 2014.<\/p>\n Last year’s number 2 – JP Morgan Chase – was subsequently pushed to third with capital of $165.7 billion.<\/p>\n “Chinese banks now account for a third of total world banking profits, outstripping the USA (20% of profits) and contributing to the largest ever annual profits for the global banking sector of $920 billion \u2013 23% higher than the previous year,” The Banker said.<\/p>\n \u201cThis is the first time since before the financial crisis that we have seen such a large annual increase in global banking profits. Apart from China\u2019s contribution US banks are also doing well and have recovered much faster from the crisis than European banks.\u201d<\/p>\n Top 10 global banks ($m)<\/h3>\n
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