PETALING JAYA: Despite slower year-on-year (y-o-y) loan growth in May, analysts are bullish of the banking sector’s outlook for the year.
Their positive outlook on the sector is premised on, among others, the banking system’s still healthy loan growth, stabilising net interest margins (NIMs), re-rating catalysts from potential write-backs in management overlays and higher dividend payout ratios. Analysts are maintaining their “overweight” call on the sector for 2024.
