The McKinsey Global Banking (www.McKinsey.com) practice has today published a new report on African Retail Banking – Roaring to life: Growth and innovation in African retail banking (https://goo.gl/grn5ju). About 65 percent of African banks’ profitability (measured by RoE) and 94 percent of their revenue growth are attributable to their geographic footprint. Importantly, the report highlights a shift in exchange-rate adjusted revenue pools North Africa, East Africa and West Africa, and away from South Africa. While African banks’ cost: income has been falling, we find that this is due to rising margins for banks, and their cost-to-assets ratio has actually been worsening. African banking still has the second highest cost of risk in the world.

Source: The North Africa Journal February 28, 2018 11:26 UTC