Thursday 28 Mar 2024
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KUALA LUMPUR (June 18): CIMB Investment Bank Bhd is forecasting net profit growth for Malaysian banks at 8.9% in 2018 versus the 10.4% growth projected earlier on expectation of a wider 7.7% increase in overheads.

CIMB analyst Winson Ng said in a note today Malaysian banks' loan loss provisioning is also projected to increase 53.3% during the year.

"We continue to rate banks as a Neutral given the expected contraction in margins (from the levels in 1Q18) and weak loan growth.

"We also envisage a weaker net profit growth of 7-8% y-o-y in 2H18F vs. around 10% y-o-y in 1H18. Potential upside/downside risks to our call include an improvement/deterioration in loan growth and fee income growth," Ng said.

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