JOHANNESBURG, Mar 31 – African banks have surpassed the $100 billion revenue mark for the first time, with profitability significantly outperforming global peers, according to a report by McKinsey & Company.
Banking revenues across the continent rose from about $99 billion in 2024 to an estimated $107 billion in 2025, underscoring the sector’s growing economic weight.
Returns on equity stood at 19% in 2024 and are projected to moderate slightly to 17% this year, still well above the global banking average of around 10%.
Despite the strong growth, revenue generation remains concentrated in a handful of markets. Egypt, Kenya, Morocco, Nigeria and South Africa account for roughly 70% of total banking revenues.
Among them, South Africa leads as the largest market, generating approximately $26.4 billion in customer-driven revenues in 2024.
The sector’s strong performance has been driven by a favorable operating environment over the past four years, including high interest rates, loan repricing, and gains from foreign exchange and trading activities.
According to Mayowa Kuyoro, African banking has transitioned from a narrative of untapped potential to one of measurable performance.
On a constant-currency basis, revenues grew at an average annual rate of about 17% between 2020 and 2024, significantly outpacing global growth. However, in US dollar terms, growth was more moderate at around 5.2% annually due to currency volatility across several markets.
Structural factors are also supporting long-term expansion. Rising financial inclusion, rapid digital banking adoption and a young, growing population are driving demand for financial services. Africa’s population expanded by more than 2% annually between 2020 and 2025, while the working-age population grew by nearly 3% per year.
Lending remains the largest revenue segment and is projected to reach about $52 billion by 2030. Meanwhile, small and medium-sized enterprises are expected to emerge as the fastest-growing customer segment.
Looking ahead, competition in the sector is expected to intensify, with banks focusing on scaling digital capabilities and diversifying revenue streams beyond traditional lending models.
