Banking sector oversold amid tariff issue

Kenanga Research opined that the headwinds on net interest margins are less pronounced than before as funding costs ease.

PETALING JAYA: The banking sector is oversold amid lingering uncertainties over tariffs, according to Kenanga Research.

“Based on past performances, we believe banks are adopting a conservative guidance on loan growth (where concerns may lie on more regionally exposed banks), while asset quality remains a minimal concern,” it said.