Banks set for more profits


Uptrend seen: Banks’ profit performance should improve moving into 2021.

KUALA LUMPUR: Analysts are cautiously optimistic that the banking sector will fare better next year compared to this year, underpinned by improvement in loan growth and expansion in net interest margin (NIM) amid a challenging economic environment.

Many analysts are currently taking a neutral stance on the banking sector in the wake of headwinds, and due to the surge in credit costs post the loan moratorium, moderate loan growth and NIM compression.

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