{"id":30431,"date":"2026-03-31T11:55:23","date_gmt":"2026-03-31T09:55:23","guid":{"rendered":"https:\/\/www.channelafrica.co.za\/channelafrica\/?post_type=news&p=30431"},"modified":"2026-03-31T11:55:23","modified_gmt":"2026-03-31T09:55:23","slug":"african-banks-outpace-global-peers-on-returns-as-revenues-top-100-bln","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/african-banks-outpace-global-peers-on-returns-as-revenues-top-100-bln\/","title":{"rendered":"African banks outpace global peers on returns as revenues top $100 bln"},"content":{"rendered":"

African banking revenues have topped $100 billion for the first time, with profitability well above the global average, McKinsey said, highlighting the sector’s \u200bgrowing economic importance and its concentration in a handful of markets.<\/span><\/p>\n

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Banking \u200crevenues across the continent reached about $99 billion in 2024 and are estimated to have increased to $107 billion in 2025, the consulting firm said in a report on Monday.<\/span><\/p>\n<\/div>\n

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Returns on equity stood \u200bat 19% in 2024 and are expected to ease to 17% this \u200byear, compared with a global banking average of about 10%.<\/span><\/p>\n<\/div>\n

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Despite the \u2060growth, revenues remain heavily concentrated.<\/span><\/p>\n<\/div>\n

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Egypt, Kenya, Morocco, Nigeria and South Africa (SA) account \u200bfor around 70% of Africa’s total banking revenues, with SA the largest market, \u200bgenerating about $26.4 billion in customer-driven revenues in 2024.<\/p>\n<\/div>\n

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The strong performance reflects a four-year period of favourable conditions driven by high interest rates, loan repricing, and gains from foreign-exchange and trading activity, even \u200bas banks continue to face currency volatility and uneven macroeconomic conditions.<\/span><\/p>\n<\/div>\n

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“African banking has \u200bmoved decisively from a story of potential to one of performance,” said Mayowa Kuyoro, a partner \u200cand \u2060head of McKinsey’s financial services practice in Africa.<\/span><\/p>\n<\/div>\n

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On a constant-currency basis, banking revenues grew by around 17% a year between 2020 and 2024, far faster than the global average.<\/span><\/p>\n<\/div>\n

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In United States Dollar terms, growth was more modest at about 5.2% annually, \u200breflecting sharp exchange-rate \u200bswings across several \u2060markets.<\/span><\/p>\n<\/div>\n

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Expansion has been underpinned by rising financial inclusion, rapid adoption of digital banking services and demand from a young and increasingly \u200burban population.<\/span><\/p>\n<\/div>\n

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Africa’s population grew by more than 2% a \u200byear between \u20602020 and 2025, while the working age population expanded by nearly 3% annually.<\/span><\/p>\n<\/div>\n

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–Reuters–<\/span><\/p>\n<\/div>\n","protected":false},"featured_media":22527,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-30431","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"","published_date":"","news_description":"African banking revenues have topped $100 billion for the first time","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/30431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/30431\/revisions"}],"predecessor-version":[{"id":30432,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/30431\/revisions\/30432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/22527"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=30431"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=30431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}