Dwindling profitability a major pain point for African banks amid rising costs

Lenders and other financial institutions across the continent are now more concerned about sustaining their profit levels than issues such as political instability and competition, as emerging risks force increased spending and compliance costs.

A survey of financial industry firms by the African Financial Summit (AFIS) and consultancy Deloitte reveals that for the first time, banks have this year cited “pressure on profitability” as a major concern, cited by 46 percent of polled institutions.