The banking industry in Nigeria recorded yet another landmark achievement as thirteen of them were ranked among the best 1,000 in the world, CEOAFRICA gathered.

According to a release by the magazine of the Financial Times Group, London, the 13 banks are; Zenith Bank, First Bank, Guaranty Trust Bank, Assess Bank, United Bank for Africa, Ecobank, Fidelity Bank, First City Monument and Diamond Bank. Others are Skye Bank, Stanbic IBTC Bank, Union Bank and Standard Chartered Bank.

The ranking details highlighted that Zenith Bank came first in the ratio of soundness parametre at 17.70 per cent, followed by Guaranty Trust Bank with 16.23 per cent. Third is Fidelity Bank at 15.67 per cent, while Standard Chartered Bank occupied the fourth place at 13.38 per cent followed by FCMB at 12.00 per cent. First Bank is sixth at 11.96 per cent, Assess bank is seventh at 11.60 per cent, while Stanbic IBTC Bank is eighth at 11.55 per cent, Ecobank is ninth at 11.14 per cent, Skye Bank is tenth at 9.90 per cent, UBA at 7.65 per cent is eleventh while Diamond Bank occupied the twelfth position at 7.31 percent and Union Bank is thirteenth at 6.35 per cent.  

Analyst has therefore described this movement as good signs of the soundness of Nigerian banks among the world global banks and the robust monetary policies of the Central Bank of Nigeria. The Country Representative – Nigeria of The Banker, Mr. Kunle Ogedengbe, said that the ranking is usually based on the definition of Tier-1 Capital as set out by Basel’s Bank for International Settlements (BIS) and that it aims to show global international banks’ soundness in relation to the Basel guidelines on capital adequacy.

This percentage, he said, change in Tier-1 Capital which underlines the strength of banks, as Zenith Bank increased by 23.82 per cent. The highest in the wholly Nigerian banks that made the ranking.

Furthermore, the Banker magazine states that Industrial and Commercial Bank of China (ICBC) has overtaken two U.S banks, Bank of America and JPMorgan Bank, to top this year’s ranking with most capital, highlighting the growth size and importance of Chinese lenders.

“The ranking which was based on Tier 1 capital as a measure of bank’s ability to lend on a large scale and endure stocks placed ICBC in the first position on the list. Britain’s HSBC, which gains much of its earnings from Asia, was fourth in The Banker’s list, with China Construction Bank (CCB) ranked fifth. China had four banks in the top 10 and 96 in the Top 1,000. Its top four lenders – ICBC, CCB, Bank of China and Agricultural Bank of China – filled the top positions for profit in 2012. ICBC’s $49 billion profit put it top of the profit table for a third successive year. Total profit for the biggest 1,000 banks is now back close to levels achieved before the 2007/09 financial crisis, but the regional share has shifted significantly”, The Banker said.

Africa, according to the Banker Magazine, stands out as top performer this year. At 2.3 per cent, it now has a higher share of global profits than Western Europe, despite accounting for less than 0.8 per cent of global assets. Pre-tax profits are up more than 30 per cent in this year’s ranking, more than double the rise in China. Its return on assets is 2.1 per cent, far outstripping Asia-Pacific or Latin America.

“China and Brazil both recorded return on assets of below 1.6 per cent, with Brazil’s total profits actually falling in financial year 2012. Kenya is the top African market for return on assets, at more than 5 per cent, and enjoys a new entrant in the ranking – the Cooperative Bank of Kenya entering at 1000. Elsewhere, Bangladesh is one of the fastest-growing markets, and it has a 43 per cent return on capital. Total assets per capita are not much more than $40, making this the most underbanked country represented in the Top 100,” it stated.