PETALING JAYA: Earnings outlook for banks have been slashed in anticipation of further interest-rate cuts as well as slower loan growth amid the challenging business environment.
According to analysts, which in consensus expect Bank Negara to lower the benchmark overnight policy rate (OPR) by at least 25 basis points (bps) next month, commercial banks could see further margin compression this year due to the expected rate cuts. And this will exert downward pressure on their earnings.
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