PETALING JAYA: Tariffs are set to negatively impact consumption, investment behaviour and supply chains, which in turn could put pressure on earnings of the banking system in the country.
CIMB Research expects earnings of local banks to fall as a result of the ongoing trade war and has thus slashed its earnings growth projection for the sector to 0.7% for 2025 from a 9% growth projected previously. It downgraded the sector to “neutral” from “overweight.”
