Nigerian banks are losing their competitive position among Africa’s leading financial institutions, with Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) and First HoldCo recording significant declines in the latest continental banking rankings, as recapitalisation pressures, weaker foreign exchange gains and rising credit risks weigh on their performance.
The 2026 edition of the 300 Finance Champions, published by Jeune Afrique and The Africa Report, ranked South Africa’s Standard Bank as Africa’s best-performing banking group, ahead of Nigeria’s Zenith Bank and Kenya’s NCBA, highlighting the growing influence of South African lenders in the continent’s financial services industry.
The rankings show a reversal in the fortunes of some of Nigeria’s biggest financial institutions. GTCO, which previously occupied the top position, dropped to 10th place, while UBA fell from fifth to 18th. First HoldCo also recorded a significant decline, moving from 12th position to the bottom of the ranking.
The decline comes at a critical period for Nigeria’s banking industry, which is undergoing one of its most significant regulatory and structural adjustments in recent years following the Central Bank of Nigeria’s recapitalisation exercise.
According to the report, the new capital requirements, the disappearance of exceptional gains associated with naira fluctuations and stricter accounting rules for recognising non-performing loans have weighed on the financial performance of Nigerian lenders.
These developments point to a changing earnings environment for Nigerian banks. During periods of substantial naira depreciation, foreign exchange revaluation gains provided an additional boost to some banks’ reported earnings. With the disappearance of these exceptional gains, lenders are increasingly required to demonstrate the strength of their underlying banking operations, including interest income, fee-based revenue, cost efficiency and asset quality.
The stricter treatment of non-performing loans also places greater emphasis on the quality of banks’ lending portfolios, potentially increasing provisioning requirements and putting pressure on profitability.
South African lenders, meanwhile, have maintained their competitive advantage through scale, diversification and stronger regional positioning.
Standard Bank, Africa’s largest banking group by assets, recorded $218.7 billion in assets, illustrating the financial capacity of major South African institutions to withstand economic shocks and maintain operations across different markets.
South Africa accounted for four of the top 10 banking groups in the latest ranking, while Kenyan lenders also delivered solid performances, supported by regional expansion and accelerating banking consolidation.
However, the report identified Zenith Bank and Access Holdings as Nigerian institutions that have been more resilient to the changing operating environment, citing strategies centred on geographical diversification, anticipation of market changes and cost control.
Their performance suggests that banks with stronger operational discipline and diversified income sources may be better positioned to navigate regulatory adjustments and changing macroeconomic conditions.
Beyond the conventional assessment of financial performance, the 2026 edition introduces a new ranking, the Real Economy Financing Champions, which measures how effectively banks deploy their resources to finance businesses and households.
The new category represents an important shift in assessing the contribution of financial institutions to Africa’s economic development, particularly as governments face mounting debt obligations and declining bilateral aid, limiting their ability to finance infrastructure and productive activities.
The ranking challenges the traditional assumption that a bank’s size, profitability and strong capital position automatically translate into meaningful economic impact.
According to the report, an institution can maintain a strong balance sheet, high profitability and healthy prudential ratios without allocating a significant proportion of its resources to lending to businesses and households.
Conversely, banks that commit more resources to financing productive activities may record weaker risk indicators because of their exposure to businesses and infrastructure projects.
This distinction is particularly important in African economies, where access to affordable long-term financing remains a major constraint for manufacturers, small businesses, infrastructure developers and households.
The report also highlights the growing exposure of West African banks to sovereign securities, reflecting the trade-off between holding relatively secure government instruments and extending credit to businesses.
While investments in government securities can provide banks with returns and help manage liquidity and credit risks, an increasing concentration in sovereign assets could limit the availability of funds for private-sector lending.
This raises a broader question about the role of African banks in supporting economic diversification, industrialisation and job creation, particularly as governments seek to reduce dependence on external financing.
Commenting on the expanded ranking, Julien Wagner, Director of Special Content, Partnerships and Media Diversification at Jeune Afrique Media Group, said the publication was designed to provide decision-makers with a broader understanding of the financial sector’s contribution to economic development.
“At a time when African growth comes with considerable financing needs, the burden of debt and constraints on external financing make the role of the financial sector more decisive than ever,” Wagner said.
He added that the new ranking provides an additional perspective on how financial institutions mobilise their resources to support economic activity and African growth.
“With the 300 Finance Champions, our ambition is to give decision-makers the tools to understand the balance of power and the transformations under way in the sector,” he said.
A broader assessment of Africa’s financial sector
The 2026 publication also includes a Top 200 Banks ranking, which assesses individual banking institutions across African markets, including independent lenders and subsidiaries of international and pan-African groups.
The ranking considers balance-sheet size, net banking income, operational efficiency, the proportion of assets funded by equity and the conversion of deposits into loans.
This provides a distinction between the strength of banking groups at the continental level and the competitive position of their individual subsidiaries in domestic markets.
A separate Top 100 Insurers ranking examines the size and performance of insurance companies across the continent, providing a broader assessment of Africa’s financial services industry.
The report also features analysis of banking consolidation, regulatory developments, credit risk, profitability, non-performing loans and cost management, alongside assessments of the strategies of major financial institutions, including Coris, Attijariwafa Bank, Bank of Africa and UBA.
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Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
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