The Best Banks To Bank In Nigeria
A lot has happened in Nigeria’s banking hemisphere over the past decade or so. While some banks are growing and getting better, some banks have been swept into oblivion or swallowed up by other banks. Some of these banks have, over the years, remained modest while some others are looking for even more ways to get better and serve their teeming customers. A cursory look at Nigeria’s banking landscape reveals that there are banks and there are banks. The recent ranking of best banks in the world casted an ugly shadow on Nigerian banks. But looking at the best banks in Africa, Nigerian banks were not left out Here, we are going to be discussing the top 5 banks in Nigeria.
Top 5 Banks In Nigeria
Below are the top 5 banks in Nigeria according to Business Insider Africa:
According to the ranking, Zenith Bank was the number one financial institution in Nigeria. However, it fell 68 places to number 454 in the Top 1000 ranking. Its Tier 1 capital position declining by 5.4%, even as it recorded a 7.7% rise in total assets.
Nigeria’s second-biggest lender, Guaranty Trust Bank, dropped from 537 to 625 in the main ranking. However, the position of the country’s top two lenders is reversed when it comes to performance. Guaranty tops the performance tables for Nigeria for the second consecutive year, coming first in its scores for operational efficiency, liquidity, and leverage, with Zenith remaining in the second position.
Access Bank ranked 630 on the overall Top 1000 compared with 508 position last year. However, Access Bank is still Nigeria’s largest lender by total assets.
Access merged with local rival Diamond Bank and acquired Kenya’s Transnational in 2019. The bank also acquired Zambia’s Cavmont in 2020 and acquired Mozambique’s African Banking Corporation earlier in 2021.
The bank topped the country for asset quality — its non-performing loan ratio dropping from 5.7% to 4.3% for the year — but ranked lowest in Nigeria’s top five for soundness.
United Bank for Africa (UBA)
United Bank for Africa, the country’s fourth-largest lender in the Top 1000, ranks third nationally for performance, with high scores for growth and return on risk offset by lower scores for leverage, soundness, asset quality and operational efficiency.
First Bank of Nigeria (FBN)
The bank ranked 630 on the overall Top 1000. It also maintained the fifth position for the overall performance in the country.
All five largest lenders posted significant falls in this year’s Top 1000 ranking, with only First Bank Nigeria registering an increase in its Tier 1 capital base during 2020.
According to Nairametrics, Nigerian banks are indispensable to Africa’s biggest economy as they offer borrowing/saving opportunities and other important facilities for citizens and corporate brands. Nigerians increasingly depend on these financial brands to provide services at competitive interest rates. The Central Bank Governor, Godwin Emefiele, a few weeks ago affirmed that Nigerian banks remained relatively resilient in supporting the nation’s $514 billion economy with industry averages of the Capital Adequacy Ratio pegged at 15.2%, Non-Performing Loans ratio hovering at 6.3%, and liquidity ratio at 40.5%, buttressing its capabilities to serve Africa’s most populated country.
Nigerian banks are, as a matter of truth, formidable vessel in the growth and development of Nigerian, nay African economy. It is as clear as a shallow stream Nigerian are also gaining weight in the bigger scheme of things in Africa and all over the world.