RHB Research maintains ‘overweight’ call on banking sector

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KUALA LUMPUR, June 7 — RHB Research has maintained its “overweight” rating on the banking sector, supported by its steady performance in the first quarter of 2022 (Q1...

KUALA LUMPUR, June 7 — RHB Research has maintained its “overweight” rating on the banking sector, supported by its steady performance in the first quarter of 2022 .

“With headwinds from rising inflation, geopolitical tensions, and the lingering COVID-19 pandemic, banks maintained their guidance for 5-6 per cent loan growth in 2022,” RHB Research said. Meanwhile, Maybank Investment Bank Bhd said there is upside potential to forecast in the sector with a positive outlook in 2023 as margin expansion if the OPR continues to rise and lower credit costs as pre-emptive provisions are written back.

 

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