Mixed bag of earnings seen for local banks

AmInvestment also noted that all lenders reported improvements in interest margins in Q420, underpinned by lower cost of funds.

PETALING JAYA: Core earnings growth for local banks in the calendar year 2020 contracted by some 21% largely due to banks proactively setting aside provisions for potential credit losses.

AmInvestment Bank’s research unit said this, adding that this was despite a marginally higher total income, supported by stronger non-interest income (NOII) which offset a weaker net interest income (NII) from interest rate cuts.