African banks’ foreign subsidiary contributions increasing; Access Bank records fastest cross-border growth

The contributions from African banking groups’ foreign subsidiaries to net income and total assets will increase further in the medium term, Fitch Ratings has disclosed in a new report.

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.

It stated that Access Bank Plc (B/Stable) has had the fastest cross-border growth in recent years.

Similarly, Kenya is attracting new entrants from both Nigeria and South Africa. “European banks reducing their exposure to Africa has provided expansion opportunities for African banking groups, particularly in francophone West Africa”.

It continued that new paid-in capital requirements across Africa will likely continue to foster Mergers and Acquisitions activity.

“Moroccan banking groups are an exception, with the contribution of foreign subsidiaries having decreased in recent years due to their lack of acquisitions and robust domestic growth”, it alluded.

Fitch Ratings continued that the cross-border expansion comes from a desire to support customers conducting cross-border business, and to take advantage of growth opportunities presented by the African Continental Free Trade Agreement, strong economic growth and increasing financial inclusion.

“It is also intended to diversify away from domestic risks, with banking groups in South Africa, Nigeria and Kenya having experienced domestic macroeconomic challenges over the past decade”, it added.

Fitch rates 12 of the 14 African banking groups in the report. These groups have subsidiaries in at least five African countries and had consolidated total assets exceeding US$15 billion at the end of 2025.

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