The flow monsters of securities trading may be in the US, but African banks generate a higher proportion of their revenues from trading activities, including foreign exchange. Net trading income constituted more than 8% of total income for African banks in 2011, compared with 7.1% for North America, 5.6% for western Europe, and just 3.7% in Asia-Pacific.
North America remains the dominant market for fee and commission income, which accounts for almost 31% of total income. But Africa is a close second, at 27.8%. The strength of non-interest income in Africa may not be an entirely positive story, however. It could reflect a shortage of lending opportunities, with the balance sheet instead put to work trading government securities in particular. The Middle East is the lowest fee and commission earner, at just 19.5% of the total, while the greatest dependence on interest income is in central and eastern Europe – at 71.5%
