Banking stocks to maintain resilience

MIDF Research maintained a “positive” call on the banking sector on the back of strong valuations and dividend outlook.

PETALING JAYA: The banking sector, which saw robust recovery in loan growth in 2023, will continue to show resilience and be favoured by investors for its strong valuations and dividend yield outlook.

“We find current sector valuations fair, considering the absence of strong earnings catalysts such as flattish net interest margin (NIM) and modest recovery in loan growth. Share prices should be supported by attractive dividend yields,” UOB Kay Hian (UOBKH) Research analyst Keith Wee said.