NBM ranked among Africa’s top 20 banks
One of the highly rated in Africa -National Bank
Latest rating of African banks has ranked local banks highly with National Bank of Malawi Plc. positioned number 20 out of the 200 financial institutions.
Apart from National Bank, three other banks in Standard, First Capital (FCB) and FDH made it in top 100 by the AfricaReport.
On top of being ranked number 20 on the continent, National Bank is also rated the best in the sub region covering Malawi, Zambia and Zimbabwe.
According to the France based Media Group which also publishes the monthly magazine Jeune Afrique, AfricaReport ranks these institutions using five criteria: profitability, liquidity, solvency, and size.
Each of the criterions consists various indicators with specific weight of up to twenty –according to the report.
“For example, the profitability dimension includes, among other things, the net result ratio over total assets, liquidity includes the loan-to-deposit ratio, solvency includes the equity to total assets and size includes the total balance sheet,” reads the report.
Apart from National Bank, other local banks making it to the list of 200 are Standard 62, FCB 67, FDH 87 and NBS 124.
Business analyst Louis Uko says local banks have the potential of becoming a financial hub for east Africa.
Meanwhile, National Bank and FCB have footprints within the region with the former operating in Tanzania while the latter operating as Capital Bank in Mozambique, Zambia, Zimbabwe and Mauritius.
Topping the list is South Africa’s Capitec Bank followed by Egypt’s Commercial International Bank and Standard Bank of South Africa.
There are 763 commercial banks in African Continent of 54 countries.
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