Stanbic Bank Tops Zambia’s Banking Sector with K1.84 Billion Profit
Stanbic Bank Zambia has reclaimed its position as the most profitable bank in Zambia, closing the 2024 financial year with a record K1.844 billion profit after tax. The bank, a subsidiary of the Standard Bank Group, also led the industry in deposits and profit before tax, marking a strong comeback after years of restructuring.
Stanbic was once predicted to be Zambia’s first Billion Kwacha profit bank in 2020 but was overtaken by Zanaco. However, after three years of refining its strategy—focusing on technology, data, and efficiency—Stanbic has surged back to the top. The restructuring has positioned the bank for sustained growth, with an optimized back-end performance and a highly competitive front-end customer experience.
Despite relinquishing the top spot, Zambia National Commercial Bank (Zanaco) remains the largest bank by assets, leading in revenue, loans, securities, and capital. However, its high cost-to-income ratio poses challenges. Still, with a record K100 million in revenue every six days, Zanaco is expected to fight for the top position in the coming years.
ABSA Bank Zambia PLC slipped to third place despite 18% profit growth, closing the year with K1.696 billion profit after tax. However, the bank had the highest Return on Equity (ROE) among the top three, reinforcing its strong shareholder value under CEO Mizinga Melu.
First National Bank (FNB) secured a top-five position, reporting K884 million in profit. With a cost-to-income ratio of 52%, the bank is expected to cross the K1 billion profit mark in 2025.
Access Bank Zambia rounded off the top five, reporting K827 million profit after a remarkable 459% growth. The bank’s rapid expansion, 205% deposit growth, and recent mergers signal a shift in Zambia’s banking landscape. Industry analysts predict Access Bank will join the billion-kwacha profit club in 2025.
Indo Zambia Bank ranked sixth with K726 million profit. Citi Bank secured seventh with K269 million profit. Standard Chartered Bank faced a tough year, ranking eighth amid regulatory scrutiny over mis-selling offshore investment products. First Capital Bank Zambia placed ninth with K189 million profit. Ecobank Zambia rounded off the top ten with K179 million profit.
Zambia’s banking sector faces both opportunities and challenges in 2025. Projected GDP growth of 6.4%, improved energy supply, and a strong agricultural outlook present growth potential. However, the tight monetary policy by the Bank of Zambia and increased foreign exchange transaction limits could favor larger banks while straining smaller players.
With 70% of the industry’s capital concentrated in the top five banks, experts predict no major changes in rankings for 2025, though positions within the top five may shift.
