The South African bank that was just named the best-performing bank in the UK

This is according to The Banker’s latest rankings, which analysed the performance of the world’s top 1,000 banks.

Although the Banker’s main rankings are based on a bank’s Tier 1 Capital, the group also does a more detailed analysis of overall performance.

This review includes more varied metrics like growth, profitability, operational efficiency and asset quality, among others.

The Banker noted that 2024 was a good year for dual-listed banks, with the top three performing UK lenders listed in more than one country.

Investec retained its crown as the best-performing bank in the UK, boosted by a high return on assets.

The bank is listed in Johannesburg and London and posted a 1.23% return on its $39 billion in assets. It also has a high capital-to-assets ratio and leverage.

Investec was founded in 1974 in Johannesburg by Larry Nestadt, Errol Grolman, and brothers Ian and Bernard Kantor.

It expanded into the UK in 1992 with the acquisition of Allied Bank. Following a series of takeovers, the bank became one of the most prominent players in both South Africa and the UK.

In the latest rankings, Investec was named the best bank across three pillars: profitability, soundness and leverage. It also featured in the top three across a host of other metrics.

Despite having total assets of $3 trillion, HSBC was in second place and recorded the largest Tier 1 capital of $144 billion.

That said, HSBC came eighth among its local peers for growth, measuring annual percentage increases in assets, loans, deposits, and operating income. Investec came third in this area.

Standard Chartered, chaired by former Absa CEO Maria Ramos, came in third place. NatWest and former Absa parent company Barclays came in fourth and fifth, respectively. 

The Banker noted that UK banks had been successful for a few years. Despite a sensitive macro market environment, lenders were more protected from falling interest rates than their European and US peers.

The group said this was due to their structural hedges, which swap interest rate risk for a fixed margin.

Regulations introduced in 2008, such as ringfencing, have given the sector a far larger capital buffer against potential turbulence.

Climbing the ranks in South Africa

In addition to being named the best overall performer in the UK, Investec saw a remarkable climb in the South African rankings, moving from fifth position in 2024 to second place in 2025.

FirstRand was ranked the best-performing bank in South Africa overall, taking over from Standard Bank, which was ranked number one last year.

However, Investec’s second place performance pushed the former champion—and South Africa’s biggest bank by Tier 1 Capital—into third position.

“Investec’s success stems from its leading positions in asset quality and return on risk, as well as second-place finishes in profitability and growth,” The Banker said.

FirstRand and Investec were ranked first and second in growth, profitability, and return on risk, while Standard Bank was the leader in operational efficiency and liquidity.