Analysts have mixed view on banking sector outlook

After the doldrums, the sector is expected to pick up momentum in the second half of next year with a recovery in, among others, oil prices as well as a clear direction on US policies especially on its interest rates

PETALING JAYA: Analysts have mixed views on the prospects of the banking sector amid a moderating growth environment and challenging business outlook.

CIMB Research retained its “overweight” recommendation on the sector as it projected loan growth of 5% to 6% for 2017. The research house opined that the loan growth for 2016 would hit the lower end of its 5% to 6% projection.