CGS International Research said it believes the benign loan-loss provisioning would have helped banks achieve 5% to 6% net profit growth in 2Q24.
PETALING JAYA: The banking sector’s net profit is anticipated to grow by 5% to 6% in the second quarter of the year (2Q24) supported by net interest income from loans and non-interest income.
CGS International Research, which is retaining its “overweight” rating on banks, said it believes the benign loan loss provisioning would have helped banks achieve 5% to 6% net profit growth in 2Q24, driven by a 3% to 4% year-on-year (y-o-y) increase in net interest income and mid-single-digit growth in non-interest income, against 6% to 7% y-o-y rise in overheads.
