Scandals to bailouts fail to dent analysts' faith in emerging-market banks

Strategists from Renaissance Capital to Newton Asset Management say emerging markets are so heterogeneous that idiosyncratic risks don't alter the big picture

A $2 billion corruption scandal is rocking India’s banks. Russia has taken over some of its biggest private lenders, while Latvia’s no 3 bank has been shut down amid US money-laundering accusations. Turkish financiers are under attack from Erdoganomics and warning signs are flashing for a Chinese bank crisis.
 
Then, why have earnings estimates for developing-nation banks jumped to a record?
 
Analysts have increased their weighted average profit forecast for the MSCI Emerging Markets Banks Index by 6.5 per cent this year, taking it above a previous high in 2013. In other words, they expect the firms' income