African banks surpass $100 billion in revenue, outperforms global average

African banks have surpassed $100 billion in annual revenue for the first time, outperforming global averages and reinforcing the sector’s growing economic strength across the continent.

The figures were disclosed in a report released on Monday by McKinsey & Company, which showed that banking revenues increased from about $99 billion in 2024 to an estimated $107 billion in 2025.

An official of McKinsey & Company says the new figures represent a shift in Africa’s financial landscape, as banks transition from years of projected potential into a phase of sustained performance and profitability.

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What they are saying

The report emphasised that Africa’s banking sector is no longer defined by future promise but by tangible performance, driven by sustained growth and improving profitability.

According to Mayowa Kuyoro, a partner and head of the firm’s financial services practice in Africa, the sector has reached an inflexion point.

• “African banking has moved decisively from a story of potential to one of performance,” he said.

Kuyoro further noted that the next phase of growth would depend on how well banks evolve beyond traditional models, particularly in digital transformation and innovation.

• “The next phase of competition will be defined by how banks scale digital capabilities and build revenue streams beyond traditional lending,” he added.

More insights

Despite the strong growth, revenues remain concentrated in just five countries, Egypt, Kenya, Morocco, Nigeria, and South Africa, which together account for about 70% of total banking revenues across the continent.

• South Africa remains the largest market, generating approximately $26.4 billion in customer-driven revenues in 2024.

The growth has been driven by a combination of high interest rates, loan repricing, and gains from foreign exchange and trading activities, even as banks continue to grapple with currency volatility and uneven macroeconomic conditions.

• Lending remains the largest revenue pool and is projected to grow to around $52 billion by 2030.
• Meanwhile, small and medium-sized enterprises are expected to emerge as the fastest-growing customer segment.

In comparative terms, Africa’s banking sector has outpaced global growth. On a constant-currency basis, revenues expanded by about 17% annually between 2020 and 2024, significantly higher than the global average.

However, in U.S. dollar terms, growth was more modest at approximately 5.2% per year, reflecting sharp exchange-rate fluctuations across several markets.

**What you should know **

In Nigeria, recent developments mirror the broader continental momentum.

• On March 29, Nairametrics reported that foreign capital inflows into the country’s banking sector rose to $13.53 billion in 2025, marking a 93.25% increase from $7.00 billion recorded in 2024.
• The surge was driven by intensified capital raising efforts ahead of the Central Bank of Nigeria’s recapitalisation deadline on March 31, 2026.
• The Central Bank also disclosed that Nigerian banks mobilised N4.61 trillion in fresh capital under the ongoing recapitalisation programme, reflecting strong investor confidence and increased foreign participation.

Additionally, Nigeria’s finance and insurance sector recorded a 14.54% growth rate in 2025, up from 2.95% in 2024, with financial institutions alone posting a 26.15% growth rate, further reinforcing the sector’s expanding role in the economy.

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