Photo courtesy of Jisun Han.

APAC banks to have steady financial performance in 2023: Fitch

Sri Lanka will deteriorate; Singapore’s profits may rise to higher than pre-pandemic.

APAC banking systems are expected to report steady financial performance in 2023, or only a mild variance compared to 2022, according to the banking sector outlook report published by Fitch Ratings.

Robust economic growth is expected in India, Southeast Asia, and China despite the weaker external environment. This in turn will support loan expansion, according to the ratings agency, with benefits to net revenue, which will largely offset weakening asset quality.

Banking systems in APAC developing markets will post a more mixed financial performance, Fitch said, noting that key metrics in most will be steady. 

“We forecast all seven systems’ average common equity Tier 1 (CET1) ratios, a key metric for loss absorption buffers, to remain at broadly similar levels to 2022. Moreover, we generally expect APAC DM banking systems to weather the deteriorating global economic landscape in 2023 better than those in other regions,” the report stated.

ALSO READ: How GCash cornered the Philippines' ‘sachet’ economy 

Two markets were listed as exceptions: Sri Lanka, and Singapore.

Sri Lanka is noted to be deteriorating with a challenging operating environment, following the sovereign’s default on its foreign-currency obligations in May. 

“Sri Lankan banks’ financial profile vulnerability will be the highest in the region. By contrast,” Fitch warned.

Meanwhile, Singapore has an “improving outlook.” Fitch expects the Lion City’s profitability metrics to strengthen further to above pre-pandemic levels. 

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


3 principles guide Bank Aladin Syariah in tapping Indonesia’s customer segments
Within a year, the digital sharia bank got past low penetration to record 1.7 million customers and now targets multiple times growth by end-2023.
Bankers face sluggish hiring market, layoffs in Hong Kong
Industry insiders reveal how investment banks prioritize cost efficiency and productivity over hiring new employees.
SG fintech Volopay targets to triple revenue by June 2024
Rising above the pandemic, varying regulations, and talent pool challenges, Volopay sets an ambitious goal to expand operations.