Loan growth continues to improve

On the whole analysts are positive on the banking sector’s long-term outlook but said that dividends may suffer from higher provision allowances and the Prosperity Tax or Cukai Makmur in the near term.

PETALING JAYA: As economic activities resume, the banking industry’s lending has also seen a pick-up.

After hitting a trough of 2.5% year-on-year (y-o-y) as at end-August 2021, loan growth continued to recover from 2.9% y-o-y at end-September to 3.3% y-o-y at end-October, thanks to the reopening of the economy and relaxation of Covid-19 movement restrictions.