Malaysian banks to put on better show in second quarter says ING

LOCAL banks, whose pre-tax profits collectively grew 5% quarter-on-quarter during the first three months of the year despite weaker interest income, are expected to improve their performance in the second half 2004 with a recovery in loan growth, said ING Financial Markets, which has maintained its overweight rating on the banking sector. 

A significant 28% rise in loan loss provisions was attributed to “isolated instances of some non-performing loans (NPLs) relapsing” and not seen as a trend towards deteriorating asset quality.