Fundamentals in banking sector remain positive despite recent pullback

The 25 basis point increase in the Overnight Policy Rate (OPR) will benefit fixed deposit (FD) savers after the real rate of return on deposits will return to positive in 2018.

KUALA LUMPUR: Affin Hwang Capital Research is maintaining its overweight outlook for the banks as the fundamentals remain long-run positive even though there could be changes in top management.

 "n our view, fundamentals of the Malaysian banks remain long-run positive even though there could be changes at the top," it said.