...Manageable Asset-Quality Pressure: The outlook Fitch Ratings assigned to the sector reflects an operating environment that is likely to be steady in 2015 despite a fall in commodity prices and subdued non-mining sector investment. However, unemployment should remain high relative to the last decade; that, combined with a significant level of household indebtedness, should translate into modest asset-quality deterioration and pressure on revenue growth for banks. Decelerating Housing Credit Growth: Housing credit and house-price growth are likely to slow and household debt to stabilise in 2015, as wage gains ease and unemployment remains high. Strong competition among banks for loans will probably continue, particularly as they complete the rebalancing needed to meet the Basel III liquidity coverage ratio from 1 January 2015. Slower Profit Growth: Higher impairment charges and net interest margin (NIM) pressure from strong loan competition are likely to limit profit growth in 2015. Nevertheless,...
