Optimistic outlook for banks

CGSI Research is anticipating Malaysian banks to record a total net profit of RM8.6bil to RM8.7bil in 2Q24.

PETALING JAYA: CGS International (CGSI) Research is reaffirming its confidence in the banking industry’s outlook, given the potential rerating catalysts of write-backs in management overlay and an improved outlook for net interest margins (NIM) and non-interest income (NOII).

It reported that banks had posted a decent 7.4% year-on-year (y-o-y) net profit growth in the first quarter of 2024 (1Q24), primarily driven by a 27.8% y-o-y rise in NOII.