Banks to prosper with reopening of economy

“With a still-high level of uncertainty on outlook, banks are targeting moderate loan growth in 2022. We expect deposit growth to keep pace, keeping loan-to-deposit ratio at high 80% levels, thereby reducing the need for aggressive deposit competition,” RHB Research said.

PETALING JAYA: Notwithstanding heightened risks brought about by geopolitical tensions, institutional investors “remain constructive on banks” and see the sector benefiting from reopening of the domestic economy.

RHB Research, which held 11 meetings with institutional investors over the past week, said that overall, there was limited pushback on the firm’s call to maintain its overweight sector rating.