Fitch Flags Diverging Outlooks for APAC NBFIs Amid Global Uncertainty

Fitch Ratings has lowered over one-third of its non-bank financial institution (NBFI) sector outlooks to 'deteriorating' because of weakening economic growth and pressures from tariffs. Its mid-year review lists diversified sensitivity to APAC markets, with Indian NBFIs being resilient whereas Chinese asset managers are exposed to higher credit risks.

 

Key Highlights:

North American and European finance & leasing institutions are faced with weakened prospects, driven by asset quality pressures.

 

Indian NBFIs have a stable outlook underpinned by economic growth and well-manageable credit risks.

 

Chinese asset managers are under pressure, with property sector weakness impacting creditworthiness.

 

APAC security firms have diverse profit trends, helped by falling interest rates in Taiwan and China.

 

World money managers struggle with profitability undermined by volatility in the markets and competition.

 

This divergence within the sector highlights the necessity for adaptive measures, given that global financial conditions remain unstable and volatile.

 

Source: Fitch Ratings | APAC NBFI Outlook Event