Improved Banking Outlook As Economic Growth Firms

We are cautiously optimistic about the broad outlook for the banking sector in Emerging Europe, which we believe stands to benefit from a cyclical pickup in economic growth across the region. Robust economic growth in countries such as Poland and Russia will lead to more favourable operating conditions for emerging European banks, spurring credit demand and improving existing credit quality. Even banks present in those countries that face more challenging environments, such as Romania and Hungary, should see improved performance as a more favourable economic backdrop provides a boon.

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