Nigeria’s major banks institutions have strengthened their dominance in African banking, with Guaranty Trust Bank (GTB) retaining the top position in The Africa Report’s 2025 “300 Finance Champions” ranking for the second year in a row. Four Nigerian banks were placed in the top ten of the annual list released on October 30.

The ranking evaluates 29 pan-African banking groups and 200 national institutions based on profitability, solvency, liquidity, credit quality and total assets. GTB scored 75.9 points, ahead of Egypt’s Commercial International Bank (68.5 points) and Nigeria’s Zenith Bank (68 points).

GTCO, GTB’s parent company, boosted its banking arm earlier this year with ₦365.9 billion in fresh capital, bringing its share capital above the Central Bank of Nigeria’s ₦500 billion requirement. The group also became the first West African financial institution to list on the London Stock Exchange’s secondary market, signalling broader expansion ambitions across Senegal, Kenya, and Rwanda.

Other Nigerian banks ranked highly: UBA placed fifth, Access Bank ninth, and First Bank of Nigeria twelfth. Their strong performance was supported by high domestic interest rates; Nigeria’s monetary policy rate remains at 27.5%, which widened net interest margins, while a large deposit base kept funding costs low.

Analysts say local operations remain the backbone of Nigerian banks. Despite pan-African footprints, more than 80% of revenues still come from the domestic market, according to Afrinvest’s Damilare Asimiyu. Rising financial inclusion, improved digital adoption, and tight monetary policy helped strengthen balance sheets through 2024 and 2025.

Egyptian banks also maintained strong positions, driven by large balance sheets and economic reforms. South Africa’s major banks, including Standard Bank and FirstRand, remained among the continent’s most sophisticated but slipped in the rankings due to slow domestic growth and higher operational constraints.

East Africa’s leading institutions, Kenya Commercial Bank and Equity, continued to benefit from regional diversification, although Kenya’s domestic banking sector faced elevated non-performing loans, averaging 16.4% at the end of 2024.

Francophone banks posted mixed performances. Moroccan lenders retained stable positions, while Burkina Faso’s Coris Bank recorded one of the steepest declines due to deteriorating economic conditions and weakened credit quality in the Alliance of Sahel States.

Growing regulatory pressure across African markets, including higher minimum capital requirements, is reshaping the sector as currency volatility and credit concentration risks push banks to strengthen buffers.

The latest ranking highlights the shifting balance of financial power on the continent, with Nigerian and Egyptian banks consolidating leadership while South African and Francophone institutions navigate slowing growth and regional headwinds.