No OPR cut good for banks, CGS-CIMB Research says

CGS-CIMB Research says: "Our picks for the sector are Public Bank, RHB Bank and AMMB."

KUALA LUMPUR: Bank Negara Malaysia's decision to retain the overnight policy rate (OPR) at 1.75% during its monetary policy committee (MPC) meeting on Thursday is positive for banks, CGS-CIMB Equities Research says.

In its research note issued on Friday, it estimates that every 25bp OPR cut would lower banks’ FY21F net profits by circa 2%.