Higher earnings and NIMs on the cards

RHB Research forecasts that the sector's earnings may rise by 15.6% year-on-year to RM31bil in financial year 2023 on further expansion of NIMs due to expectations Bank Negara would raise the overnight policy rate two to three more times this year. — Bloomberg

PETALING JAYA: RHB Research remains “overweight” on the banking sector on expectation that it will continue to enjoy earnings growth from improved net interest margins (NIMs) and core fee income.

In a report yesterday, the research house said the sector would also benefit from a normalising cost base and decent loan growth, underpinned by a resilient economy and labour market.