Malaysia Banks Face Slower Loan Growth -- Market Talk

Dow Jones
Jun 26, 2025

0140 GMT - Malaysia's banks are facing softer loan growth in 2025, prompting TA Securities to lower its full-year loan growth forecast for the sector to 5.7% from 6.4%. Rising global uncertainty has dampened both business and consumer sentiment, leading to more cautious borrowing, analyst Li Hsia Wong says in a note. While a potential interest-rate cut could lower the sector's earnings by around 1.8%, the central bank's statutory reserve requirement ratio cut should help offset the impact, she says. However, she expects earnings to stay supported by steady fee income, solid capital buffers and cost control. TA Securities maintains an overweight sector rating, citing earnings visibility and strong fundamentals, pegging CIMB Group, Hong Leong Bank and Public Bank as top picks. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

June 25, 2025 21:40 ET (01:40 GMT)

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