Maybank IB Research sees stronger earnings growth for banks

For 2020, it expects aggregate loan growth (both domestic and foreign) to average 4.1% in 2020F (4.2% in 2019E) and NIMs to taper off by 3bps in 2020 (6bps in 2019E), having factored in a further 25bps rate cut.

KUALA LUMPUR: Maybank Investment Bank Research expects the banking environment to remain stable but still challenging in 2020.

In its research note issued on Tuesday, it forecasts faster operating profit/net profit growth of 4.8%/4.7% from 3.2%/1.1% in 2019E, on the back of moderating net interest margins (NIM) compression and stable, albeit still elevated, credit cost.