Strategy Note /
GlobalThe emerging market banks most vulnerable to rising cost inflation
For the largest EM banks, a 10% increase in costs reduces profit by 10% (assuming no change in revenues or provisions)
Profit gearing to cost inflation is greatest for South Africa, Philippines, India banks. MENA banks are less sensitive
Bank valuations in MENA, South Africa appear most at risk. Colombia, Peru banks are overly discounting inflationary pain
Rahul Shah
Head of Corporate & Thematic Research @ Tellimer Research
Contributors
3 June 2022
Published byTellimer Research
