It says the relatively quick rebound in commodity prices has assisted the continent's recovery and the rapid increase in Chinese investment in African countries have contributed to an improved performance by the banks.
In a special report on African banks, Fitch says the continent's rapidly growing economies and its enormous "under-banked position" means that the banks in Africa have strong growth potential.
However, it warns that banks must show greater levels of transparency and risk management and must adhere to corporate governance principles in order to attract investments.
Fitch forecasts that a rapid growth in retail banking could be a key feature of future credit growth while it expects that project and infrastructure financing could generate significant business for banks.
It says that the fragmented state of the banking systems in Africa results in few economies of scale and this negatively impacts on revenues and efficiencies. The high interest rate margins are offset by high infrastructure and operating costs for the banks.
Read the Fitch Ratings Pan-African Banks Report.
