Lagos — African banking revenues have topped $100 billion for the first time, with profitability well above the global average, McKinsey said, highlighting the sector’s growing economic importance – and its concentration in a handful of markets.
Banking revenues 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.
Returns on equity stood at 19% in 2024 and are expected to ease to 17% this year, compared with a global banking average of about 10%.
Despite the growth, revenues remain heavily concentrated. Egypt, Kenya, Morocco, Nigeria and South Africa account for around 70% of Africa’s total banking revenues, with South Africa the largest market, generating about $26.4 billion in customer-driven revenues in 2024.
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 as banks continue to face currency volatility and uneven macroeconomic conditions.
“African banking has moved decisively from a story of potential to one of performance,” said Mayowa Kuyoro, a partner and head of McKinsey’s financial services practice in Africa.
On a constant-currency basis, banking revenues grew by around 17% a year between 2020 and 2024, far faster than the global average. In U.S. dollar terms, growth was more modest at about 5.2% annually, reflecting sharp exchange-rate swings across several markets.
Expansion has been underpinned by rising financial inclusion, rapid adoption of digital banking services and demand from a young and increasingly urban population. Africa’s population grew by more than 2% a year between 2020 and 2025, while the working-age population expanded by nearly 3% annually.
Lending remains the largest revenue pool and is projected to grow to about $52 billion by 2030, while small and medium-sized enterprises are expected to be the fastest-growing customer segment.
“The next phase of competition will be defined by how banks scale digital capabilities and build revenue streams beyond traditional lending,” Kuyoro said.
*Isaac Anyaogu. Editing: Mark Potter
