In its CIS+ Banks Outlook report, Fitch Ratings has projected a neutral sector outlook for banks in the CIS+ region for 2024. The report covers Armenia, Azerbaijan, Georgia, Kazakhstan, Ukraine, and Uzbekistan banks.
Fitch Ratings anticipates that the operating conditions, core credit drivers, and most credit metrics will remain stable for regional banks in 2024. Furthermore, the prospects for loan growth in the region are expected to be favourable.
The sector outlooks are neutral for all six banking sectors covered in the report. Fitch Ratings believes that the operating conditions for Ukrainian banks have reached a low, and as a result, expects core credit drivers to stabilize in 2024.
For the other five markets, core credit drivers are expected to be supported by reasonable real GDP growth, translating into favourable loan growth prospects and still-strong profitability, underpinned by higher inflation and rates. Azerbaijan and Kazakhstan, which are oil-producing countries, will continue to benefit from the high oil prices.
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