Johannesburg, South Africa – African banks have surpassed $100 billion in annual revenue for the first time, generating an estimated $107 billion in 2025, up from about $99 billion in 2024.
The figures, from a McKinsey & Company report issued Monday, show the continent’s banking sector no longer just promises growth but is now delivering sustained performance and improving profitability.
Okay News reports that Mayowa Kuyoro, a partner and head of McKinsey’s financial services practice in Africa, described the milestone as an “inflexion point” for the region. He said African banking has moved from a narrative of future potential to a record of tangible results, with the next phase depending on how quickly banks adopt digital transformation and diversify beyond traditional lending. The report highlights that the strongest revenue gains often come from higher interest rates, loan repricing, and foreign‑exchange and trading activities, even as banks contend with currency volatility and patchy macroeconomic conditions.
The growth is still concentrated in a handful of markets, with Egypt, Kenya, Morocco, Nigeria, and South Africa contributing about 70% of total banking revenues. South Africa alone generated roughly $26.4 billion in customer‑driven revenue in 2024, making it the largest banking market on the continent. Lending remains the biggest revenue stream and is projected to expand to around $52 billion by 2030, with small and medium‑sized enterprises expected to become the fastest‑growing customer segment. On a constant‑currency basis, African banking revenues grew about 17% per year from 2020 to 2024, far above the global average, though dollar‑denominated growth was closer to 5.2% due to exchange‑rate swings.
Nigeria, in particular, mirrors the broader continental trend. Foreign capital inflows into the banking sector rose to $13.53 billion in 2025, more than double the $7.00 billion recorded in 2024, helped by banks’ capital‑raising drives ahead of the Central Bank of Nigeria’s recapitalisation deadline. The central bank also reported that banks raised a combined N4.61 trillion under the recapitalisation programme, with foreign investors providing about 27% of the total. Nigeria’s finance and insurance sector grew 14.54% in 2025, up from 2.95% the year before, underscoring how banking is anchoring wider economic expansion.
