African banking after the crisis : How African banks can manage the impact of COVID-19—and prepare for recovery

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Summary

New analysis by McKinsey suggests that the COVID-19 crisis could result in African banking revenues falling by 23 to 33 percent between 2019 and 2021. Over the same period, African banks’ return on equity (ROE) could fall by between 5 and 15 percentage points, driven by rising risk costs and reduced margins. Banking revenues might only return to pre-crisis levels in 2022–24, depending on whether a rapid or slow recovery scenario prevails.

Source: Mckinsey & Company

Published: 2020

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