Investment banks are financial institutions that play an advisory role in raising capital for wealthy individuals, companies, and governments. These investment banks act as agents, or sometimes work alongside other agents for their clients, in a process where securities are offered in exchange for investment from prospective investors. Tradable securities in this process include stocks, bonds, preferred shares, and exchange- traded funds (ETFs).
Along with raising capital, investment banks assist companies in the merger process, acquisition of other companies, and trading of securities between companies. To make a profit, these investment banks charge their clients certain fees, or a commission is agreed between both parties, for the services rendered.
Africa’s developing economy has been a destination for investment in recent years; with many sectors of the continent’s economy witnessing an immense amount of growth, as years have passed. This development has seen Africa rising from the poorest continent in the world, to the fastest developing continental economy. With its majorly youthful population and vast natural resources, Africa is a target for so many investors and the possibility of more investors coming in does not seem to reduce in the nearest future, despite recent economic challenges faced by several countries on the continent.
Investment banks are important in the continued development of the African economy because they are needed to act as intermediaries between corporations and investors. Under normal circumstances, investment opportunities attract investors but investment banks show these investors where the right investments are, how they would handle these investments and the future possibilities of their investments.
This article takes a look at the 10 top investment banks in Africa, based on each bank’s revenue in 2020. These investment banks have helped African companies secure investment from indigenous and foreign investors; subsequently helping to move the African economy forward.
10. First Bank of Nigeria Limited Revenue: USD 600 Million Headquarters: Lagos, Nigeria
The First Bank of Nigeria was established in 1894, making it the oldest bank in West Africa. It is owned by FBN Holdings, which has about 1.3 million shareholders; its largest shareholder is the staff pension fund with about 3.5% of its stake. With a revenue of about USD 600 Million, First Bank is a major player in investment banking in Africa and its services extend outside Nigeria, with proof of that being its 10 million customers spread across 12 countries worldwide.
9. Zenith Bank PLC Revenue: USD 1.9 billion Headquarters: Lagos, Nigeria
Zenith Bank is a commercial bank that was founded in 1990 and like First Bank of Nigeria, it has its headquarters in Lagos, Nigeria. With over 500 branches in all Nigerian states including the Federal Capital Territory, Zenith Bank is the second-largest bank in Nigeria. According to Africa Ranking, Zenith Bank has revenue of USD 1.9 billion. It was first listed on the Nigerian Stock Exchange (NSE) in 2004, after a high Initial Public Offering (IPO), and in 2013, it listed USD 850 million worth of shares on the London Stock Exchange (LSE) at USD 6.8 each. Zenith Bank is owned by Nigerian businessman, Jim Ovia
8. Guaranty Trust Bank Limited (GTBank) USD 2.2 billion Headquarters: Lagos, Nigeria
Another Nigerian bank on the list, Guaranty Trust Bank has revenue of USD 2.2 billion according to Africa Ranking. Like Zenith Bank, it was also founded in 1990 and became a public company in 1996. Among the records broken by Guaranty Trust Bank, is being the first sub-Saharan Africa bank to be listed on the London and German Stock Exchanges. GT Bank employs over 12,000 staff and has subsidiaries in Cote D’Ivoire, Gambia, Ghana, Liberia, Kenya, Rwanda, Tanzania, Uganda, Sierra Leone, and the United Kingdom.
7. BMCE Bank Revenue: USD 3.8 billion Headquarters: Casablanca, Morocco
BMCE Bank, also known as Banque Marocaine du Commerce Extérieur, was founded in 1959 as a public bank and has its headquarters in Casablanca, Morocco. It is Morocco’s most ‘internationally-oriented bank, with 550 branches and 5000 staff within the country and beyond; its network stretches as far as Europe, Asia, and the Middle East. The privatization process of Banque Marocaine du Commerce Extérieur was completed in 1995 after it was acquired by its current highest shareholder, Financecom Group. The Financecom Group currently owns 36.31% of the bank’s shares. BMCE Bank offers consumer, corporate and private banking services.
6. Banque Populaire SA Revenue: USD 4.1 billion Headquarters: Casablanca, Morocco
Banque Populaire SA (formerly known as Banque Centrale Populaire SA), is a Morocco-based commercial bank that was founded in 1961. It is listed on the Casablanca Stock Exchange and is majorly owned by Regional Banques Populaires who owns 51.7% of its shares. Banque Populaire SA is the second largest bank in Morocco and has a revenue of about USD 4.1 billion according to Africa Ranking. Like BMCE Bank, it is also internationally-oriented; with offices in the United Kingdom, Canada, Netherlands, France, Gibraltar, Spain, and Belgium. Banque Populaire SA provides numerous banking services, including checking accounts and investment accounts
5. Commercial International Bank (CIB) Revenue: USD 5.5 billion Headquarters: Giza, Egypt
Commercial International Bank (CIB), is the only Egyptian bank to make this list. Founded in 1975 under the name Chase National Bank of Egypt, the Giza-based bank is the leading private sector bank in Egypt and has a revenue of about USD 5.5 billion. Commercial International Bank, is the choice of over 500 corporations that drive the Egyptian economy and in 2017, it was named the world’s best bank in emerging markets by Euromoney. According to Bloomberg, Commercial International Bank has over 6000 employees in its 174 branches.
4. Rand Merchant Bank (RMB) Revenue: USD 5.8 billionHeadquarters: Johannesburg, South Africa
Rand Merchant Bank was founded in 1977 by Gerrit Thomas (GT) Ferreira, Laurie Dippenaar, and Paul Harris in Sandton, South Africa. With a revenue of USD 5.8 billion, RMB makes its way into the list of top investment banks in Africa. It is placed 15th in Africa Ranking’s Biggest Companies in Africa list and has about 22,000 employees. Rand Merchant Bank has its headquarters in Johannesburg and employs over 22,000 staff. In 1993, RMB was listed as a public company and currently has ties with FirsRand Bank; another top South African bank.
3. Attijariwafa Bank Revenue: USD 7.2 billion Headquarters: Casablanca, Morocco
Attijariwafa Bank is an international bank based in Casablanca, Morocco. It was formed in 2003 after a merger agreement between Banque Commerciale du Maroc, and Wafabank. Its biggest shareholder is King Mohammed VI’s holding company, Société Nationale d’Investissement (SNI) -also known as Al Mada, which owns 46.4% of the bank’s shares. Attijariwafa Bank is the largest public bank in Morocco, as it has almost 20,000 employees in its 6,300 branches worldwide. Aside from being its largest bank, Attijariwafa Bank is also Morocco’s biggest company and plays a huge role in raising capital for companies.
2.Standard Bank Revenue: USD 14.4 billion Headquarters: Johannesburg, South Africa
Standard Bank was formed in 1862, under the name Standard Bank of South Africa, as a subsidiary of the United Kingdom-based Standard Bank. This bank is the largest African bank by assets and its operations are in over 20 countries across the world. The major shareholders of Standard Bank are the industrial and Commercial Bank of China (ICBC), which holds 20.1% of its shares. With a revenue of USD 14.4 billion and rated by Africa Ranking as the seventh biggest company in Africa, Standard Bank has a reputation for targeting emerging markets
- FirstRand Bank Revenue: USD 18.5 billion Headquarters: Sandton, South Africa
Africa’s top investment bank in terms of revenue is FirstRand Bank; with a revenue of USD 18.5 billion. This bank is the biggest in South Africa and employs over 42,000 people. FirstRand Bank is listed on Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange, whilst having ties with Rand Merchant Bank (RMB). FirstRand Bank was founded in 1970 and employs over 42,000 people
