African Banks Surpass Global Peers with Over $100 Billion in Revenues, Says McKinsey
A McKinsey report released on March 31 from Lagos shows African banking revenues have exceeded the $100 billion mark. The consultancy said the sector reached about $99 billion in 2024.
McKinsey estimated revenues rose to roughly $107 billion in 2025. The analysis highlights that African banks now surpass global peers, producing more than $100 billion in revenues.
Profitability and recent growth
Return on equity was about 19% in 2024. McKinsey expects this to ease to roughly 17% in 2025.
By contrast, the global banking average sits near 10%. On a constant-currency basis, revenues grew about 17% annually from 2020 to 2024.
Measured in U.S. dollars, annual growth was about 5.2% over the same period. That lower figure reflects sharp exchange-rate swings across several markets.
Where revenues are concentrated
Revenues remain heavily concentrated in five countries. Egypt, Kenya, Morocco, Nigeria and South Africa accounted for around 70% of the continent’s total banking revenues.
South Africa was the largest market. It generated about $26.4 billion in customer-driven revenues in 2024.
Drivers and outlook
Favourable conditions over four years supported performance. Higher interest rates, loan repricing, and foreign-exchange and trading gains all played a role.
Banks still face currency volatility and uneven macroeconomic conditions. Rising financial inclusion and digital banking adoption underpin expansion.
African population growth exceeded 2% per year from 2020 to 2025. The working-age population rose by nearly 3% annually in that timeframe.
Lending remains the largest revenue pool. McKinsey projects lending revenues could reach about $52 billion by 2030.
Small and medium-sized enterprises are expected to be the fastest-growing customer segment. The next phase of competition will depend on digital scaling and new revenue lines.
Expert view
Mayowa Kuyoro, partner and head of McKinsey’s financial services practice in Africa, said the industry has shifted from potential to performance. He highlighted digital capability and diversification as key competitive levers.
| 2024 banking revenues (approx.) | $99 billion |
| 2025 estimated revenues | $107 billion |
| Return on equity (2024) | 19% |
| Expected ROE (2025) | 17% |
| Global banking ROE (approx.) | 10% |
| South Africa customer revenues (2024) | $26.4 billion |
| Constant-currency annual growth (2020–2024) | ~17% |
| USD annual growth (2020–2024) | ~5.2% |
| Projected lending revenues by 2030 | ~$52 billion |
This analysis is reported by Filmogaz.com, based on the McKinsey study published March 31.
