Lower earnings seen for Malaysian banks in H2

Affin Hwang Capital Research said an improving global economic outlook and relatively stronger commodity prices could set the stage for a further rebound in banking sector earnings this year.

PETALING JAYA: Non-interest income and net interest margins (NIMs) of banks could take a further hit, resulting in lower earnings for banks in the second half (H2) of the year.

This is expected to happen amid a softer capital market and stronger competition for deposits, resulting in a margin squeeze.