L' agence de notation financière Moody's took place against a background of falling household incomes and corporate profits, and estimated that the asset quality of most African banks would deteriorate in 2023. The information was announced in a press release published on Tuesday, February 21, 2023.

Moody's highlights that this year, despite a difficult operating environment, the profitability of African banks should remain stable. Indeed, improved net interest margins will offset higher operating costs and provisions to cover loan losses. According to the agency, “the asset quality of most banks operating in Africa will deteriorate, reflecting the reduction in household disposable income and the decline in corporate profits.”

According to Moody's, most African banking systems face a difficult operating environment, characterized by high inflation, high interest rates, and, in the case of Egypt and Nigeria , through pressures on foreign currency liquidity, while indicating that the depreciation of local currencies is an additional pressure factor in many countries on the continent. However, the profitability of African banks should remain stable despite this difficult operating environment.