After a brief respite in 2021, African banks endured another difficult year in 2022. Rising interest rates and the strength of the US dollar curtailed economic growth across the continent, while South Africa, Nigeria and Egypt – home to 14 of the 25 largest African lenders in The Banker’s Top 1000 World Banks 2023 ranking – all face mounting economic challenges.
Local currency weakness acted as a brake on growth and profits for banks across the continent. While this year’s 25 largest African lenders have registered a 5.6% rise in their pre-tax profits, their aggregate Tier 1 capital has contracted by the same amount.
