The banking industry in Africa is rapidly developing, despite 57% of the population being unbanked. According to statistics in 2022, 456 million adults were expected to possess a bank account, a significant increase from the 2017 statistics, which reported that only 298 million African adults utilized bank accounts. African business claims that African banks have managed to bounce back profit-wise after the COVID-19 pandemic.
African banks are small by world standards, holding less than 1% of the world’s total capital. However, they outperform almost all other regions in terms of profits, earning twice as much as expected for their size, contributing 2% to global profits, and delivering a 20% return on investment. This is the third highest level in the world.
This report uses measured assets, cash, equities, and business interests to arrive at the ranking of the banks. Below is a list of the top 10 largest banks in Africa, starting from the bottom up to the top.
So far, South African banks dominate the list with five banks among the top 10 in Africa. The question remains: why do African banks generate so much profit even when the continent is considered very poor? Your thoughts and opinions on this topic are welcome.
