RAM: Banks’ profitability recovered in 1Q but risks rising

The roads in Jalan Ampang in front of the KLCC Twin Towers were clear on Monday night (May 31), a day before another full lockdown was to implemented fron June 1-14. - FAIHAN GHANI/The Star

KUALA LUMPUR: The banking industry’s profitability recovered in 1Q 2021 after last year’s slump but RAM Ratings expressed concern about the highly uncertain operating environment and the impact on the industry’s profit outlook.

The rating agency said on Friday the top five largest banking groups reported a y-o-y increase in profit before tax ranging from 13% to 114%, after adjusting for one-off items.