Fitch Ratings says the sector outlook for African banks in 2022 is neutral, with uncertain business conditions and Covid-19 risk constraining recovery. "Banks are likely to make mistakes in the pursuit of growth under prevailing operating conditions, which are fraught with challenges and uncertainty. Even excluding the serious threat of new variants, banks face the prospects of limited earnings growth, and, therefore, limited loss absorption capacity," says Mahin Dissanayake, Head of African Banks at Fitch. The fast accumulation of government debt securities by banks presents a key risk as the focus shifts to sovereign debt sustainability. The full report, "African Banks 2022 Outlook: No Easy Road to Recovery" is available at www.fitchratings.com or by clicking the link above.

Source: The North Africa Journal December 28, 2021 05:06 UTC