North Africa, and especially Egypt, dominate the Top Banks rankings. The region includes the headquarters of 43 of 100 banks and Egypt is the home base for 19. Morocco also scores highly with nine banks in the top 100, including several star banks who have climbed the rankings. It is followed by Tunisia (eight banks), and Algeria (seven banks).
This is partly a tribute to the excellent management of many regional banks, which have flourished despite volatile times. However, difficult trading has generally led to lower profits compared to previous rankings. This year, the ROE of Crdit Agricole du Maroc is close to 0%.
National Bank of Egypt again dominates the regional ranking and comes second in Africa with Tier 1 capital of $7.5bn in June 2023, up from last years ranking which used the June 2021 results as the latest available, when capital was $7.3bn. This is particularly impressive, as the period incorporates significant falls in the value of the Egyptian pound compared to the dollar, including in March and October 2022 and January 2023. Egyptian banks are estimated to hold significant reserves in foreign currencies, mitigating some of the effects of currency fluctuations, and banking regulation keeps them away from some riskier activities. Eliminating the gap between official and black-market rates has led to brisk foreign exchange business for the banks. The current year also sees an $8bn IMF programme for Egypt and some $35bn in investment flows from the UAE, after a year in which the banks were lending heavily to government and exposed to government liquidity risks.
Moroccos Attijariwafa Bank climbs to second in the region and third in the continent, followed by Banque Centrale Populaire, which is fifth in Africa. Banks have continued to build up strong buffers in terms of provisions for bad loans, and rising interest rates continue to boost profits.
Egypts Banque Misr has fallen back to sixth in the continent, down from third in 2023, its Tier 1 capital down from $7.2bn in December 2021 to $5.1bn according to the December 2022 results. Moroccos Bank of Africa BMCE Group has climbed the continental ranking by one place to tenth, with Tier 1 capital up to $3.2bn in December 2023, from $2.8bn a year earlier.
