PETALING JAYA: In the run-up to domestic banks releasing their fourth-quarter ended Dec 31, 2024 (4Q24) and full-year financial results in the coming weeks, analysts are expecting weaker quarter-on-quarter (q-on-q) earnings although year-on-year (y-o-y), financial performance should hold up.
Analysts expect net interest income (NII) to be affected by net interest margin (NIM) pressure to varying degrees as banks compete over deposits at the year-end. While RHB Research does not expect deposit competition to be as fierce as 2023, it could still impact banks’ NII, although NIM compression could be lower than 4Q23’s 4-basis point drop.
