The Proshare Bank Strength Index (PBSI) for 2024 has identified Access Corp, Zenith Bank, FBNH (First Bank of Nigeria Holdings), ETI (Ecobank Transnational Incorporated), UBA (United Bank for Africa), and GTCO (Guaranty Trust Holding Company) as Tier 1 Banks.
This classification underscores their robust performance across various financial metrics based on audited statements for the FY 2023.
According to Proshare, Tier 1 banks like these are distinguished by their capability to handle significant public and private sector transactions effectively.
The report emphasizes the need for continuous refinement of evaluation metrics to ensure they reflect the evolving dynamics of the banking sector, where larger institutions often hold advantages in operational capacity and market influence.
Looking forward, Proshare analysts anticipate a transformative period for Nigerian banks between 2024 and 2026. This period is expected to be shaped by the Central Bank of Nigeria’s banking sector recapitalization initiative, increased investments in financial technology, and enhanced customer service scalability.
They highlight the importance of strategic capital deployment to drive shareholder returns and improve customer experiences amidst evolving economic realities and technological advancements.
The report also cautions against pitfalls seen in other global banking sectors, urging Nigerian banks to manage macro and microeconomic risks effectively.
Lessons from past banking crises, both in Nigeria and internationally, underscore the critical importance of robust asset and liability management (ALM) practices to sustain financial stability and growth.
In terms of economic context, the report notes Nigeria’s GDP growth over the past two decades and stresses that simply raising banks’ equity bases does not guarantee economic development.
Transforming bank equity into drivers of economic growth requires coordinated efforts across public and private sectors, emphasizing a comprehensive approach to policy formulation and implementation.
Proshare, founded in 2006, positions itself as a trusted platform providing professional financial information and insights. It aims to foster informed discussions and accountability within the financial marketplace through evidence-based analyses and timely engagements.
The firm’s commitment to credibility and reliability underscores its role as a vital link between markets, investors, regulators, and stakeholders in Nigeria’s financial landscape.
Tags: banks