Banking sector’s asset quality remains robust

RAM Ratings said lighter provisioning expenses offset slightly weaker treasury during the quarter and markets-related income while net interest margin held steady compared to the preceding quarter.

KUALA LUMPUR: The Malaysian banking industry’s asset quality remains robust and resilient, with a 1.72% gross impaired loan (GIL) ratio in the system at end-September 2023, unchanged from end-December 2022, says RAM Ratings.

In its Banking Quarterly Roundup for the third quarter of 2023 (3Q23), it said lighter provisioning expenses offset slightly weaker treasury during the quarter and markets-related income while net interest margin (NIM) held steady compared to the preceding quarter.