African banks’ foreign subsidiary contributions increasing; Access Bank records fastest cross-border growth
According to the UK-based firm, the contributions from these subsidiaries have grown over the past decade, and the increase has accelerated since the pandemic, propelled by acquisitions and, in the case of Nigerian banking groups, the devaluation of the Nigerian naira.
Fitch Ratings reports that the contributions from African banking groups' foreign subsidiaries to net income and total assets are expected to rise in the medium term. This growth has been fueled by acquisitions and devaluation of currencies, particularly for Nigerian banking groups. Access Bank, a Nigerian bank, has experienced the most rapid cross-border expansion in recent years.
Kenya is attracting new entrants from Nigeria and South Africa, while European banks reducing their presence in Africa has created opportunities for African banking groups, especially in francophone West Africa. New paid-in capital requirements across Africa are likely to continue fostering mergers and acquisitions.
Moroccan banking groups, however, are an exception, with foreign subsidiary contributions decreasing due to a lack of acquisitions and robust domestic growth. The cross-border expansion aims to support customers conducting cross-border business and capitalize on growth opportunities from the African Continental Free Trade Agreement, strong economic growth, and increasing financial inclusion.
The report covers 12 out of the 14 African banking groups, all of which have subsidiaries in at least five African countries and have consolidated total assets exceeding US$15 billion as of the end of 2025.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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