The International Banker 2017 Middle East & Africa Awards Winners

Pre-2008, Nigerian banks lent funds to managers to invest in stock markets—a move that resulted in various banks failing, with many requiring bailouts. Nigeria responded with a series of oversight changes that produced chronic instability. The sinking financial conditions within Nigeria resulted in funds from international investors being trapped within the country. Understandably, this reduced investor confidence as the uncertainty of withdrawal created an unforeseen risk. Nonetheless, Nigerian banks have been recovering since mid-2014, following a slate of banking oversight reforms. Unfortunately, this period was also characterized by collapsing oil prices, but recently the country’s stocks hit a six-month high on the heels of improved banking outlooks from Moody’s.

South Africa’s banking sector is dominated by four large private banks: FirstRand, Standard Bank, Nedbank and Barclays Africa. South Africa is pushing to legitimatize many of its country’s policies while increasing service availability. In that vein, the South African government is creating a state-owned bank, run out of its postal-service locations. Beyond competing with the private-banking sector—which controls 20 percent of the country’s gross domestic product (GDP)—the public banks will lend to South Africa’s poorer citizens, while distributing welfare grants. Currently, approximately 11 percent of South Africa’s adult population is “financially excluded”, meaning 4.3 million people have no access to banking services. Beyond limiting savings and reducing transparency, this also limits people’s access to credit capital, further reducing their capacity for entrepreneurial ventures.

Africa’s ninth-largest economy, Kenya, is working against an impending economic crisis as investor confidence responds to its regulatory banking policy. With the economy slowing, faults in the existing system are starting to show. This economic slowdown has come in the wake of extensive government spending in the runup to an election. Despite robust exports, plentiful remittances and above-average performances, investors are bracing for the impact in Kenya’s banking sector. Any pre-emptive efforts may stymie the effects of the downturn but will highlight the necessity for regulatory reform. There are concerns that the government may move in the opposite direction. Suggestions on loan-rate caps ignore historical evidence that suggests they do not work. Such a decision would hurt the small- and medium-sized firms that fuel Kenya’s economy.

Saudi Arabia’s banking sector could have its first bank merger in 20 years. HSBC Holdings Plc, through Saudi British Bank, and Royal Bank of Scotland (RBS) Group Plc are in merger talks regarding Alawwal Bank. RBS has attempted to sell its stake in Alawwal but has been unable to due to a Saudi law dictating that local banks cannot be foreign-controlled. This regulatory policy works against the Kingdom’s newly stated goals of diversifying the Saudi economy away from oil revenue. Were RBS to sell their holdings to HSBC, the entity would be the third-largest bank in Saudi Arabia, trailing National Commercial Bank and Al-Rajhi Bank. As Saudi Arabia moves to liberalize and diversify its economy, it is garnering attention from regional neighbors. Nearby Qatar’s National Bank has announced plans to apply for a Saudi investment-banking licence.

In its review of Middle Eastern banking systems, ratings-agency Fitch gave Jordan the thumbs up. Jordan’s banking system has been relatively stable, despite being encircled by destabilizing factors in neighboring countries. Even so, Fitch deemed its financial metrics positively and suggested that the Kingdom will continue to perform well. The Jordanian banking system has undergone deep transformations to make it both more profitable and more resilient. The fundamental shifts that were introduced prior to 2011 were effective in turning Jordan’s economy into the stable bulwark that it is today. It is expected that Jordan will continue along this path and maintain stable banking practices.

Egypt’s banking sector has also recently received positive reviews from external monitors and rating agencies. While a variety of private banks operate within Egypt, the majority operate in the commercial sector, with a few specialize in niche markets. The National Bank of Egypt, Banque Misr and Banque du Caire, notably, control 40 percent of the banking sector. The positive ratings and stable outlook are a far cry from the panic that gripped the country following the regime-changing Arab Spring protests. Continued stability and growth suggest that the country’s banking sector should be one of the rising stars of the Arab League.

 >>>MIDDLE EAST AWARD WINNERS  

               BANKING CEO OF THE YEAR                  
Middle East
AbdulRazak Ali Issa

Bank Muscat (Oman)

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BEST CUSTOMER SERVICE
PROVIDER OF THE YEAR

Middle East
Gulf Bank (Kuwait)

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Best Banking Group Qatar
QNB Group

Best Investment Bank Of The Year Dubai
Emirates NBD

Best Investment Bank Of The Year Egypt
EFG-Hermes

Best Investment Bank Of The Year Qatar
QInvest

Best Commercial Bank Of The Year Dubai
Commercial Bank of Dubai

Best Commercial Bank Of The Year Egypt
Banque du Caire

Best Commercial Bank Of The Year Jordan
Jordan Commercial Bank

Best Commercial Bank Of The Year KSA
Riyad Bank

Best Commercial Bank Of The Year Kuwait
Al Ahli Bank

Best Commercial Bank Of The Year Qatar
Qatar International Islamic Bank

Private Bank Of The Year Dubai
Emirates NBD

Best Private Bank Of The Year Qatar
International Bank of Qatar (IBQ)

Best Innovation In Retail Banking Bahrain
Ithmaar Bank

Best Innovation In Retail Banking Dubai
Commercial Bank of Dubai

Best Innovation In Retail Banking Egypt
ABK-Egypt

Best Innovation In Retail Banking Jordan
Housing Bank for Trade & Finance

Best Innovation In Retail Banking KSA
Al Rajhi Bank

Best Innovation In Retail Banking Kuwait
Gulf Bank

Best Innovation In Retail Banking Qatar
Doha Bank

Best Islamic Bank Of The Year Bahrain
Ithmaar Bank

Best Islamic Bank KSA
Al-Rajhi Bank

Best Islamic Bank Of The Year Oman
BankDhofar

Best Islamic Bank Of The Year Ras al-Khaimah
RAKBANK

 >>>AFRICA AWARD WINNERS  

BANKING CEO OF THE YEAR
Africa
José de Lima Massano

Banco Angolano de Investimentos (BAI) (Angola)

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BEST CUSTOMER SERVICE
PROVIDER OF THE YEAR

Africa
First National Bank (South Africa)

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Best Banking Group Kenya
Equity Group Holdings

Best Banking Group South Africa
Standard Bank

Best Banking Group Togo
Ecobank Transnational

Best Investment Bank Of The Year South Africa
Standard Bank

Best Commercial Bank Of The Year Angola
Banco Angolano de Investimentos (BAI)

Best Commercial Bank Of The Year Ghana
Ecobank

Best Commercial Bank Of The Year Ivory Coast
BICICI

Best Commercial Bank Of The Year Kenya
KCB Bank

Best Commercial Bank Of The Year Mauritania
Banque Mauritanienne pour le Commerce International (BMCI)

Best Commercial Bank Of The Year Mozambique
Millennium bim

Best Commercial Bank Of The Year Namibia
First National Bank

Best Commercial Bank Of The Year Nigeria
Zenith Bank

Best Private Bank Of The Year Mauritius
MCB Private Banking

Best Private Bank Of The Year South Africa
Investec Private Bank

Best Innovation In Retail Banking Angola
Banco Angolano de Investimentos (BAI)

Best Innovation In Retail Banking Cameroon
National Financial Credit Bank

Best Innovation In Retail Banking Ghana
GCB Bank

Best Innovation In Retail Banking Ivory Coast
BICICI

Best Innovation In Retail Banking Kenya
Equity Bank

Best Innovation In Retail Banking Mauritania
Banque Mauritanienne pour le Commerce International (BMCI)

Best Innovation In Retail Banking Nigeria
Zenith Bank

Best Innovation In Retail Banking South Africa
First National Bank

Best Islamic Bank Of The Year Senegal
Banque Islamique