The outlook for African banks remains generally favorable for the year 2026, driven by an environment economic and financial conducive to the expansion of credit and the improvement of the quality of assets in the majority of countries on the continent. It's the main conclusion of the report “Africa Banking Outlook 2026: favorable” conditions support loan growth and asset quality”, published on Monday, February 2 by S&P Global Ratings.

According to the analysis, improved growth economic growth is expected in most of the five countries where the 22 banks operate. African women rated by the agency. Robust performances are anticipated in Egypt, Morocco and Nigeria, while a more moderate recovery is expected materialize in South Africa, driven by the continuation of reforms economic, the rise in infrastructure investments and a consumption in recovery. On the other hand, the absence of major economic reforms continues to weigh on Tunisia's prospects.

S&P Global Ratings also points out that the risk geopolitics, often decisive for market credit conditions emerging markets, did not have a major impact on macroeconomic performance African women. However, the continent remains exposed to possible tensions. likely to disrupt commercial chains, to influence the prices of commodities and to affect the confidence of investors and households.

Margins under pressure, but resilience confirmed

At the operational level, the agency believes that banks African countries should offset the negative effect of lower interest rates by increasing loan volumes and reducing credit losses. Diversifying business models should also contribute to stabilizing profitability, especially for establishments South Africans.

If customer deposits should remain there main source of financing for the sector, banking profitability should however, vary from country to country. S&P Global Ratings therefore expects a resilient performance of Moroccan and South African banks, supported by higher volumes of activity and by reducing the cost of risk, compensating for the normalization of market revenues in Morocco and the erosion of margins in South Africa.