The Proshare Bank Strength Index (PBSI) identified Access Corp, Zenith Bank, FBNH, ETI, UBA, and GTCO as Tier 1 Banks in 2024.

The report is based on a pool of financial metrics based on audited financial statements for the FY 2023.

Supporting the Afrinvest-inspired idea of FUGAZE, the report is based on a pool of financial metrics based on audited financial statements for the Financial Year (FY) 2023.

Consequently, Fidelity Bank ranked above the tier-two banks, followed by FCMB, Stanbic IBTC, Sterling Holdco, Wema, and Unity Bank.

In high-value public and private sector transactions, Tier I banks typically outperform their Tier II rivals, according to the most recent Proshare study.

As a result, the evaluation measures for bank classification must be updated often, particularly in cases where large seems to be attractive.

It stated: “Banks are like bulls in a pen; they are stuck behind bars that are difficult to escape. Banking, on the other hand, is free-spirited, agile, and capable of reinterpreting economic reality.

“Over the last two decades, the financial payment and settlement business has increasingly grown on the back of cloud-based blockchain technology, which may be destined to improve the efficiency of financial transactions and the quality of person-to-person (P2P) and business-to-business (B2B) relationships.”

It stated that between 2024 and 2026, investments in financial technology, customer service scalability, and digital asset engineering will take a new turn thanks to an ongoing banking sector recapitalisation initiative sponsored by the Central Bank of Nigeria.

Proshare analysts add, "With higher capital levels, banks must use the more significant amounts of cash available to improve shareholder returns and customer service experiences. Many banks will get cut at the knees by lacking a deliberate strategy to transition from cash flow to value creation.

"Recalling the challenges faced by banks during the Charles Soludo-inspired in 2005, a few bank executives would have more money than business skills, resulting in a terrible waste of additional capital.”

As lenders increase their size and scope to satisfy the demands of an economy valued at US$1 trillion, researchers warn of macro and microeconomic hazards, as exemplified by the US.

The report ineffective asset and liability management (ALM) played a significant role in the 2023 failure of a number of US banks, including Silicon Valley, First Republic, and Signature Banks.

The research went on to say that increasing the equity base of Nigerian banks does not ensure economic expansion.

It stated, “Transforming bank equity into drivers of economic growth requires more than money; it requires a coordinated public and private sector plan, with what Proshare analysts have repeatedly called a whole-of-government approach to policies, programmes, and processes.”

Four Nigerian banks make list of best in Africa

Legit.ng reported that according to the just issued 2024 World's Best Banks report, four Nigerian banks are ranked among the best in Africa.

According to a poll conducted by the monthly financial journal Global Finance, the top banks in Burkina Faso, Sierra Leone, Gambia, Ghana, and Nigeria were UBA, GTBank, Access Bank, and Zenith Bank.

It also mentioned how banks are strong rather than failing. The local currency problems in Nigeria and Egypt have been terrible, and some people are even reporting incomes that break records.