South African banking group Standard Bank has been chosen as the best bank in sub-Saharan Africa in Euromoney magazine’s annual Awards for Excellence survey, the company announced on Tuesday.
In addition, Standard Bank won top honours in four sub-categories of the survey: best bank in South Africa, Namibia, Uganda and Swaziland.
The awards acknowledge those banks with “outstanding performance, quality service, innovative and progressive business structures and products, and momentum in their markets”.
In being voted the best bank in sub-Saharan Africa, Standard Bank beat last year’s winner, Citigroup, as well as Barclays and Standard Chartered, all of whom are major players in Africa.
Standard Bank’s operations in most countries in Africa outside South Africa operate under the name Stanbic Africa, to avoid confusion with those of the United Kingdom-based Standard Chartered Bank.
In acknowledging Standard Bank as the overall winner, Euromoney said: “There are several reasons for Standard Bank’s success. First, the strength of its position and the efficiency of its operations in the key South African market give it a huge head start over its main competitors.
“Citibank, the sixth-largest bank in South Africa, is a long way behind, and Barclays and Standard Chartered have only just re-established a full presence. And although Standard Chartered has demonstrated its intent with the acquisition of a local bank, its choice of the internet bank 20twenty hardly gives it much of a foothold in South African banking.”
Beyond the South African market, Stanbic Bank’s footprint is now bigger than its competitors in the economies in which it has established a direct presence, said Euromoney.
Euromoney also recognises Standard Bank’s “well-developed acquisition strategy” in African countries such as Botswana, Malawi, Uganda and Mozambique.
“When, rather than if, Stanbic makes its next acquisitive move in sub-Saharan Africa, it is likely that it will be similarly decisive,” said the magazine.
It said much of Standard Bank’s impressive growth in South Africa in 2003 is a reflection of its fast-expanding presence in the domestic retail market, which accounted for 40% of earnings in 2003, compared with 35% for commercial and investment banking. — I-Net Bridge