Inexpensive valuations pull factor for banks

HLIB Research said it was tactically bullish on banks, premised on inexpensive valuations, appealing yields and the undervalued ringgit.

PETALING JAYA: The banking industry has shown some resilience in its recent first-quarter report card even as it faces a tougher operating environment.

This was evident as the industry’s net interest margins (NIMs) generally contracted, which is indicative of the prolonged strong competition for deposits.