KUALA LUMPUR, Sept 11 — The banking sector remains resilient despite narrowing net interest margins (NIM), with analysts maintaining a POSITIVE outlook. Ample liquidity is enabling lenders to release pricier deposits while focusing on cheaper current and savings accounts (CASA). Loan-to-deposit ratio optimisation through loan growth is also seen as viable, particularly with stronger loan growth anticipated in the second half of 2025. Analysts note that AFFIN, AMMB, and RHB are well-positioned due to effective liability management and superior CASA growth, while caution is advised on BIMB and Public Bank. Confidence across banks in offsetting NIM compression signals a firm topline outlook.
Analyst Report
Malaysian Banks Seen Weathering NIM Compression with Liability-Led Strategies
Analysts maintain POSITIVE view on banks, citing strong CASA growth, liability management, and loan expansion to offset NIM compression in 2H25.
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