Pre-tax profits slumped at leading lenders last year as the country’s heavily indebted private sector struggled with the pandemic.
Declines in net interest income and other factors have suppressed revenue levels at the industry’s largest banks.
While the Japanese banking industry has not enjoyed the meteoric rise seen in China over the past decade, it continues to build up its asset base.
The NPL ratio at Bank of Cyprus, the country’s largest lender, fell from 41% in 2016 to 12.4% last year.
The country’s three largest banks recorded close to 20% growth in mortgages last year.
ABN Amro increased loan impairment provisions by 285% in 2020, in preparation for the damaging impact of Covid-19.
A surge in Covid-19 infections this year has prompted authorities to renew calls for banks to cut lending rates.
The central bank implemented targeted support measures last year to ease pressure on companies and provide banks with liquidity.
Tier 1 capital at Asaka Bank and Agrobank rose last year, although it dipped at National Bank of Uzbekistan.
Gross total loans picked up at leading lenders last year while NPLs dipped.
US leveraged loans activity increased considerably in the first half of 2021 and the rate of high-yield issuance remains rapid.
In the first half of 2021, the volume of internet banking transfers increased by 58.5% compared with the first half of 2020.
Return on equity at the country’s leading lenders has fluctuated in recent years due to a volatile economic environment.
The central bank is widely expected to start raising rates at its meeting in September.
The country’s largest banks have sufficient capital to absorb larger credit losses resulting from the pandemic.
The NPL ratio at National Bank of Greece and Eurobank Ergasias has dropped sharply in the past few years.
As Covid-19 support measures are phased out, lenders have the capacity to manage exposures and limit loan losses.
As Covid-19 hammers the country’s vital tourism sector, SMEs and low-income households may struggle to service debt.
Deal-making in emerging markets is following the lead of developed markets with booming activity.
Fitch recently revised Rwanda’s outlook to negative from stable amid concerns about rising public sector debt.