PETALING JAYA: Malaysian banks, including its counterparts in Asia, may experience pressure on profitability despite continued growth, according to global management consulting firm McKinsey & Co.
Its Asia banking practice director, Joydeep Sengupta, said several imminent challenges that might put pressure on profitability included the difficult economic environment which would lead to higher risk costs, the changing regulatory requirements and the increasing shortage of capital that would put pressure on capital costs and consequently returns.