System loans momentum moderating

Kenang Research said loan leading indicators were not favourable as demand for business fell, and households’ demand moderating in October with subdued applications.

PETALING JAYA: Banks’ asset quality will likely be the key swing factor to earnings in the sector in the coming quarters, according to a Kenanga Research report.

The research unit noted that the recent reporting season showed further loans loss provisioning by the banks with earnings visibility still opaque.