What does 2H26 hold for banks?

AFTER benefiting from rising interest rates and resilient economic growth over the past several years, the global banking sector has had geopolitical tensions shave off some of its “defensiveness”, a positive trait that is often associated with banking stocks.

In Malaysia, earnings in the last quarter, although generally resilient, indicated weakness even as banks grappled with headwinds and international conflict which impacted profits to a certain extent.