Banks to ride on economic recovery

Analysts have remained largely overweight on the banking sector despite the reintroduction of another automatic loan moratorium.

KUALA LUMPUR: Despite the current low interest rate environment, the gradual recovery in the economy will support an eventual uptrend in the interest rate cycle and drive banks’ core net interest income (NII) higher in future quarters.

Similarly, a stronger market would enable stronger fees and commissions for non-interest income (NOII).