Banking sector poised for higher earnings ahead

Kenanga Research said most banks have seen the worst being over with regard to net interest margin erosion.

PETALING JAYA: Earnings of the banking sector in the third quarter of 2023 (3Q23) came in largely within expectations and banks may compete on the financing front to gain share going forward.

In its review of the banking sector 3Q23 results, Kenanga Research said most banks have seen the worst being over with regards to net interest margin (NIM) erosion on a quarter-on-quarter (q-o-q) level, instigated by intense competition for deposits since December 2022.