African banking revenues have surpassed $100 billion for the first time, driven by strong profitability, digital growth and rising financial inclusion, according to a new McKinsey & Company report.
The sector generated $99 billion in revenue in 2024 and an estimated $107 billion in 2025, while returns on equity reached 19 percent in 2024 and are projected at 17 percent in 2025, compared with a global banking average of about 10 percent.
McKinsey said in its report, from potential to performance: A snapshot of African banking that revenues across the continent grew by about 17 percent annually in constant currency between 2020 and 2024.
The firm attributed the sector’s expansion to rising financial inclusion, rapid adoption of digital financial services and strong demand from a young, urbanizing population.
Despite the growth, African banking remains concentrated, with Egypt, Kenya, Morocco, Nigeria and South Africa accounting for about 70 percent of total banking revenues.
South Africa remains the continent’s largest banking market, with client-driven banking revenues of about $26.4 billion in 2024.
Lending remains the biggest revenue pool, generating just over $30 billion in 2024 and projected to rise to around $52 billion by 2030.
McKinsey said small and medium-sized enterprises are expected to become the fastest-growing customer segment, with SME banking revenues set to grow by about 8 percent annually through 2030.
