The financial capacity of a nation is determined by the strength of its banks. Without a viable and stable banking sector the economy of any nation will find it difficult to compete in the global market.
Banks are the major
financiers of critical projects across the world; refineries, agriculture,
infrastructure etc. are a number of sectors that depend on the banking sector
for its expansion. The strength of the banks also helps to stabilize the local
currency. Thus it is imperative that governments create policies that will
guide the growth of its banks.
Africa however is at
the lower rung of the ladder as far as the strength of banks is concerned
amongst the continents of the world.
Compared to other
continents Africa has a lower number of commercial banks; about 763. Findings
show that South Africa and Tanzania have the highest number of commercial banks
in Africa with 51 and 50 respectively. America has over 4,000 banks; Europe has
more the 6,000 with Asia a little over 1,900 commercial banks.
Worldwide it has been
verified that China has the 4 largest banks in the world with United States
banks coming behind in fifth to eight positions. In Africa the top 10 largest banks are
dominated by South Africa banks followed by banks from the North African region
of Africa.
Overall Egypt, South
Africa, Kenya, Morocco, and Nigeria dominate the banking industry in Africa.
Banks across Africa
suffered severe blows due to the outbreak of Covid-19 just like other banks
globally. Low productivity has also affected the growth of banks as banks
depend on economic activities to thrive. This has further plunged the ratings
of African banks relative to other banks domiciled in advanced societies.
Despite the economic
downturn some banks are doing well relative to others in the continent. They
have remained resilient and capable to weather the prevalent unpleasant economic
situation.
Some African banks are
now more attuned to the intricacies of the industry and thus invest in ventures
that further expand their portfolio base. Many have built a formidable base in
their local economies and also expanded into new territories and exploring
opportunities.
Banks in Africa are
presently capitalizing on digitalization to enhance the quality of services and
products that offer their customers. It is therefore imperative that banks are assessed
to determine how much growth the general African continent is performing.
In Africa the top 10
largest banks are dominated by South Africa banks followed by banks from the
North African region of Africa. This ranking will be focused on the largest
banks in Africa based on its assets and valuations.
Below is the reliable
ranking of Africa’s largest banks based on the size of its assets
No 10
Investec Bank: Investec
Bank from South
Africa makes the list as the 10th
biggest bank in Africa. It has an asset size of $29.9 billion. The bank is
staffed by about 8,500 employees across South Africa, UK and other locations
across the globe. The company started operations in 1974, South Africa.
No 9
BMCE Bank Group: This
bank BMCE Bank Group is a Moroccan bank and it has an asset size of
$37.3 billion. This bank was formerly known as MediCapital Bank Plc. was launched
in 2007 and started trading in February 2008. It is present in 15 countries.
No 8
Banque Centrale Populaire: Banque
Centrale Populaire is also a major bank in the Moroccan banking sector. it has
an asset size of $49.9 billion. It maintains branches in Germany, France,
Spain, England and Belgium. It was founded in May 1961
No 7
Banque Misr: This
Egyptian bank has a total asset size of $57.9 billion. It
was founded in 1920 and is owned by the Egyptian Government. It has its headquarters
in Cairo and has about 590 branches.
No 6
Attijariwafa Bank: This
Moroccan
bank based in Casablanca is a
multinational commercial bank is the leading bank in Morocco. The bank was
established after merger between two banks was consummated. It maintains
branches in about 4930 locations across the globe. It has a total asset size of
$63.8 billion.
No 5
Nedbank: Nedbank
was founded in 1888 in Amsterdam and later moved its operations to South Africa.
It [presently has its headquarters in Johannesburg, South Africa. This bank has
over 30, 000 employees This South African bank has a total asset size of $78.6
billion.
No 4
FirstRand: FirstRand
Bank is a South
African bank on the top 10 list.
It is one of the largest financial institutions in South Africa and provides
services in banking, insurance and investments. It operates in 8 major
countries in Africa with its headquarters in Johannesburg. It has a total asset
size of $81.9 billion.
No 3
Absa Bank: Absa
Bank is another South
African bank which was formerly
known as Amalgamated Banks of South Africa. It was founded in 1986 and is a subsidiary
of Absa Group Limited. The bank has its head office in South Africa and has
branches across Africa. It has a total asset size of $91 billion.
No 2
National Bank of Egypt: This
Egyptian
bank was founded in 1898 in
Egypt. National Bank of Egypt is the largest bank in Egypt and ranks as the third
largest banks amongst the Arab banks. Its head office is in Cairo with branches
in about 516 locations. NBE has a total asset size valued at $124.9 billion.
No 1
Standard Bank (Stanbank) Group: At $172.9 billion, this South African bank has the largest asset size and market
capitalization in Africa. It has its headquarters in South Africa has both
corporate and high net worth individuals a as clients. It was founded in 1862
as a South African subsidiary of a British Standard Bank.