- Nigerian banks have been ranked among the best in Africa, with three Tier 1 commercial banks listed in the top 10
- The African ranking, led by a South African bank, also shows that Nigerian banks have maintained a strong presence, especially in West Africa
- There are over 24 Central Bank of Nigeria-licensed commercial banks, several of which are listed on the Nigerian Stock Exchange
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
A new report by African Business magazine has revealed the list of the top 100 Banks operating in Africa in 2024.
The report used various indicators, with capital as a key metric, to determine the relative strengths of African banks.
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The ranking is based on Tier 1 capital, a key measure of a bank's financial strength, including equity capital and disclosed reserves.
Nigerian banks ranking
Ten Nigerian banks were included in the top 100 ranking, with three placed among the top 15 based on Tier 1 capital.
The banks are Zenith Bank, Access Bank, and First Bank of Nigeria, securing the 10th, 12th, and 13th positions, respectively.
Other Nigerian lenders on the list include United Bank for Africa (25th), Guaranty Trust Bank (37th), Fidelity Bank (56th), FCMB (64th), Union Bank (65th), Wema Bank (87th), and Stanbic IBTC Bank (90th).
Here is a snapshot of Nigerian banks' ranking and capital
| Bank | capital | Africa Ranking |
| Zenith Bank | $2.54bn | 10th |
| Access Bank | $2.26bn | 12th |
| First Bank of Nigeria | $2.05bn | 13th |
| United Bank for Africa (UBA) | $1.04bn | 25th |
| Guaranty Trust Bank (GTBank) | $0.69bn | 37th |
| Fidelity Bank | $0.32bn | 56th |
| FCMB | $0.23bn | 64th |
| Union Bank of Nigeria | $0.22bn | 65th |
| Wema Bank | $0.14bn | 87th |
| Stanbic IBTC Bank | $0.13bn | 90th |
Nigerian banks' best return on investment
The report highlighted that Nigerian banks have the best Return on Equity (ROE), a key measure for investors, despite currency devaluations and inflationary pressures in Nigeria.
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The top-ranked bank by this measure in Guaranty Trust Bank achieved a very strong 57% ROE on Tier 1 capital of $1.1 billion, the report stated.
Other banks in this category are United Bank of Africa (UBA) achieved ROE of 42%, slightly ahead of compatriots Zenith Bank (41%), Stanbic IBTC in Nigeria (38%), and Access Bank (38%).
Top Banks in Africa
South African banks continued to dominate the top tiers, led by Standard Bank, FirstRand, and Absa, Vanguard reports.
Here are the top 10 banks in Africa:
- Standard Bank Group (South Africa) - US$11.76bn
- FirstRand (South Africa) - US$10.42bn
- Absa Group (South Africa) - US$8.77bn
- Nedbank Group (South Africa) - US$6.09bn
- National Bank of Egypt (Egypt) - US$7.52bn
- Attijariwafa Bank (Morocco) - US$6.22bn
- Banque Misr (Egypt) - US$5.63bn
- Banque Centrale Populaire (Morocco) - US$4.38bn
- Investec (South Africa) - US$4.06bn
- Zenith Bank (Nigeria) - US$2.54bn
7 Nigerian banks post N4.2 trillion profit in 2024
Legit.ng previously reported that seven major Nigerian banks made a total profit of N4.2 trillion in the 2024 financial year.
Despite tough economic conditions, banks such as Zenith Bank PLC, United Bank for Africa (UBA), Guaranty Trust Holding Company Plc (GTCO), First Bank, Fidelity Bank, Stanbic IBTC, and Wema Bank managed to earn this large amount.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
