Africa’s Banking Sector Experiences Remarkable Growth

The continent’s banking giants have posted their strongest performance on record, with significant gains across key metrics. Tier 1 capital has surged by 23% to reach $155 billion, exceeding both last year’s figure and the previous high of $135.3 billion set in 2022.

Total assets have also expanded from $1.56 trillion to $1.8 trillion—a 16% increase—demonstrating broad-based strength within the sector. This marks a decisive turnaround from recent years, when inflation and economic headwinds constrained performance.

The improvement reflects several factors: favorable exchange rates provided some lift, but stronger underlying economic growth and bank profitability appear to be the primary drivers. Sub-Saharan Africa’s 4.5% GDP growth in 2025—its fastest pace in a decade—coupled with falling inflation (from 4.8% to 3.4%) created a supportive environment.

Standard Bank Maintains Lead Amidst Digital Investments

Standard Bank continues to top the rankings, extending its lead with a 19% increase in Tier 1 capital to $15.7 billion. The bank’s assets now total $217.7 billion, generating $3.4 billion in net profit—the highest among commercial banks in our ranking.

Standard Bank’s continental strategy is paying off, with operations outside South Africa contributing 40% of group earnings. Key markets include Angola, Ghana, Kenya, Nigeria, and Tanzania.

The bank is also investing heavily in digital platforms, with its South African customer base growing by 9% in 2025—a momentum that has continued into this year. Standard Bank reported a further 10% increase in headline earnings for the first half of 2026, reaching $1.6 billion, with return on equity at an impressive 22%.

National Bank of Egypt Narrows Gap

The National Bank of Egypt (NBE) retains second place while posting a remarkable 43% increase in Tier 1 capital to $10.5 billion—closing the gap slightly on Standard Bank.

Other notable movers include Capitec Bank, which jumps eight places to 14th with a 55% increase in Tier 1 capital to $2.68 billion. This is particularly impressive given that Capitec’s balance sheet is significantly smaller than those of South Africa’s traditional banking giants.

The composition of the top tier illustrates how concentrated the African banking sector remains, with the entire Top 14 coming from just four countries: South Africa, Egypt, Morocco, and Algeria.