The best regions to invest in banks

With banks under pressure following the downturn, Sanlam's Catherina du Toit looks at where is best to invest in these institutions.

Investing in emerging market banks has always been perceived as risky. But events of the past few years have caused investors to reconsider. Going forward, the question is: where is the best opportunity for banks to grow and earn a good return on their capital, while engaging in their most basic activity, i.e. banking. In the immediate future basic banking is likely to grow faster in selected emerging markets. Unfortunately, this is no longer a secret, so the next challenge is to gauge the resumption of growth in developed markets, and whether the valuations are cheap enough for the ...