Finance

Sub-Saharan Africa: Sumitomo Mitsui outperformed US investment banks in 2020

Wednesday, 13 January 2021 02:43
Sub-Saharan Africa: Sumitomo Mitsui outperformed US investment banks in 2020

(Ecofin Agency) - 2020 has been a tough year for large US banks active in the investment segment in sub-Saharan Africa, Refinitiv reported.

Over the period reviewed, Morgan Stanley posted $18.1 million in revenue, down 21.5% YoY despite a 100% increase in the number of transactions the company arranged, while Citigroup’s profit dropped by 44.4% YoY and the number of transactions it arranged fell by 41%.

The bad period for US investment banks happened to be a blessing for Japanese Sumitomo Mitsui Financial Group, which for the first time became the leading investment bank in sub-Saharan Africa, generating $57.3 million in revenues, up 557.2% YoY. The Japanese’s performance over the period was supported by its 6 operations in the banking loan segment. Standard Chartered Bank, Bank of America Securities, and Absa Group (ex-subsidiary of Barclays) also experienced a positive year with a 55% increase in revenues for each of them, despite a decline in the number of their transactions (except for Absa).

Overall, investment banks active in SSA generated a total revenue estimated at $524 million, down 19% when compared with 2019. The figure is also the worst performance over the past six years. The situation is justified by the decline in segments such as the capital market, merger, and acquisition market, and that of syndicated loans.

Although sub-Saharan Africa was relatively less affected by the pandemic, some of its hard-hit economies, such as South Africa, are also its most dynamic financial and capital marketplaces. Strict quarantine measures in several countries in the region have also prompted caution among investors who have faced significant trade-offs.

Performance in the first quarter of 2021 should be monitored. Many credible institutions are predicting an economic recovery in the region in 2021. But in a market where it is difficult to spot all the transactions between economic players, it is difficult to predict how strong the recovery will be. Also, in many partner countries, especially in the West, the situation remains quite volatile.

Idriss Linge



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.