Banks expected to see higher earnings this year

PETALING JAYA: The pre-tax profitability of banks is expected to see an improvement this year on bigger net interest margins (NIMs) and lower loan-loss provisions. This is supported by an anticipated increase in interest rates in the later part of the year and quicker loan growth, which will then lend support to an increase in NIMs.

Moody’s Investors Service noted, however, that banks may continue to take precaution against potential credit losses from loans that are under the repayment assistance programme.