Malaysian Banks Seen Weathering NIM Compression with Liability-Led Strategies

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.

Malaysian Banks

Business News

kazimahmood

Recent Posts

Saudi Arabia Faces Crossroads After UAE Exit from OPEC+: Price War or Stability?

Saudi Arabia weighs price war or stability after UAE exit from OPEC+, with Malaysia’s O&G…

11 hours ago

Advancecon Secures RM48mil Johor Contract

Advancecon Holdings has secured a RM48 million contract for infrastructure work in Johor, signaling strong…

11 hours ago

USD100 Oil Prices Shape Malaysia’s Market Outlook

UAE exit from OPEC+ and USD100 oil boost Malaysia’s energy outlook; Dialog and Hibiscus seen…

11 hours ago

As a net exporter of oil and gas, Malaysia is expected to gain revenue from higher crude prices

Malaysia benefits from high oil prices, but faces inflation and logistical risks due to the…

19 hours ago

ASEAN Manufacturing Slows as Middle East War Fuels Price Pressures

ASEAN manufacturing PMI falls to six-month low as Middle East war drives price pressures, supply…

19 hours ago

FBM KLCI Climbs Above 1,739 Despite Global Market Weakness

FBM KLCI advanced on stronger buying momentum despite global market weakness, rising geopolitical tensions and…

20 hours ago

This website uses cookies.