Stable asset quality


CIMB Research expects credit expansion to gain traction later this year.

PETALING JAYA: The banking sector is expected to stay resilient into the final quarter of 2025, with analysts projecting steady loan growth, sound asset quality and attractive dividend yields despite lingering headwinds from rate cuts and external uncertainties.

Maybank Investment Bank Research (Maybank IB) noted that August numbers pointed to a stable operating environment with fairly decent loan growth of 5.4% year-on-year (y-o-y), and stable asset quality. It observed that deposit growth continued to lag lending but flagged comfort in current account savings accounts expansion.

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