Awash Bank is named the best bank in Ethiopia by Global Finance magazine for 2024, further solidifying its position among the top financial institutions on the African continent. This recognition places Awash Bank within the elite group of the 36 leading banks across Africa.
The award comes from Global Finance, a respected publication known for its annual evaluation and ranking of international financial institutions. This year marks the 31st edition of their esteemed selection, honoring the world’s best banks and regional leaders.The magazine stated that Awash had been aggressively expanding, opening 150 new branches. Commanding a 20% market share in assets, 18% in deposits and loans, and 16% in customer base, the bank posted USD 172.5 million in profits.Significantly, Awash Bank is the sole Ethiopian representative on the distinguished list of awardees. This accolade marks the third consecutive year that Awash Bank has been recognized as Ethiopia’s best bank, firmly establishing its leadership position within the nation’s financial sector.Standard Bank has been named Africa’s best bank. Strategically extending its presence throughout the continent, the Africa Regions franchise has emerged as a potent catalyst for profitability. In 2023, this franchise substantially bolstered the group’s headline earnings, accounting for 42% of the total, a notable increase from the previous year’s 36%. Headline earnings surged to USD 960.3 million, marking a significant 49% rise, while the return on equity (ROE) soared to 28.1%, a substantial improvement from 21% in 2022. Key contributors to this success included Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia, and Zimbabwe, highlighting the franchise’s diverse and robust performance across multiple markets.According to Global Finance, the winners of Global Finance’s “Best Bank” awards across Africa showcase several key trends. Pan-African banks such as Ecobank and UBA are expanding their reach to capitalize on the African Continental Free Trade Agreement. Digital transformation is a major focus, with banks like Standard Bank, Bridge Bank, and Banque Atlantique investing heavily in digital channels. Additionally, several banks, including Societe Generale, Bridge Bank, and VISTA Bank, recognize the importance of financing small and medium-sized businesses (SMEs).However, political and economic instability pose challenges for some institutions. BANGE in Equatorial Guinea and UBA in Burkina Faso are both feeling the effects of unrest and economic hardship. West Africa is a region dominated by Standard Bank, but Ecobank and UBA are making significant strides. Local players like Bridge Bank (Cote d’Ivoire) and GTBank (Gambia) are also innovating in their respective markets.Southern Africa sees established names like Banco Angolano de Investimentos (Angola), First National Bank (Botswana & Namibia), and Millennium Bim (Mozambique) maintain their leading positions.State-owned giants dominate North Africa, with Banque Nationale d’Algerie (Algeria) and Attijariwafa (Morocco) being particularly strong. Amen Bank (Tunisia) is working hard to navigate a difficult economic climate.Moving to East Africa, Awash Bank leads the pack in Ethiopia, while Co-operative Bank (Kenya) leverages agency banking for impressive growth. CRDB Bank (Tanzania) is a pioneer in green financing, demonstrating a commitment to sustainability.Central Africa is home to the Bank of Kigali (Rwanda), which emphasizes financial inclusion as a core value. Rawbank (DR Congo), on the other hand, is prioritizing digital transformation, with a 40% increase in uptake last year.Societe Generale is strategically exiting some markets to focus on stronger ones. Banco Commercial do Atlantico (Cape Verde) is changing ownership. In Nigeria, Zenith Bank is celebrating record profits and appointing its first female CEO. Finally, Omdurman National Bank (Sudan) and Amen Bank (Tunisia) are both adapting to challenging environments in their respective countries.Source: Sheger FM 102.1 and Global Finance
