Malaysia's Banking Sector Likely to Be Supported by NIM Improvement -- Market Talk

Dow Jones

Jan 05

0337 GMT - Malaysia's banking sector outlook may remain bright, supported by potential re-rating catalysts such as write-backs in management overlays and an improvement in net interest margin in 2026, CGS International analyst Winson Ng says in a note. He also expects dividend payout ratios to rise at most banks. Loan growth is forecast at 4.5%-5.5% in 2026, in line with Malaysia's projected GDP growth of 4.6%. Household loans are likely to expand by 5.0%-5.5%, while business loans grow by about 5%, he adds. CGS maintains an overweight rating on Malaysian banks and pegs Malayan Banking as its top pick, citing improving return on equity and one of the sector's highest dividend yields. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

January 04, 2026 22:37 ET (03:37 GMT)

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He also expects dividend payout ratios to rise at most banks. Loan growth is forecast at 4.5%-5.5% in 2026, in line with Malaysia's projected GDP growth of 4.6%. Household loans are likely to expand by 5.0%-5.5%, while business loans grow by about 5%, he adds. CGS maintains an overweight rating on Malaysian banks and pegs Malayan Banking as its top pick, citing improving return on equity and one of the sector's highest dividend yields. 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He also expects dividend payout ratios to rise at most banks. Loan growth is forecast at 4.5%-5.5% in 2026, in line with Malaysia's projected GDP growth of 4.6%. Household loans are likely to expand by 5.0%-5.5%, while business loans grow by about 5%, he adds. CGS maintains an overweight rating on Malaysian banks and pegs Malayan Banking as its top pick, citing improving return on equity and one of the sector's highest dividend yields. (yingxian.wong@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 04, 2026 22:37 ET (03:37 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NIM","symbol_name":"纽文精选市政基金","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2601071061","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2601071061","pubTimestamp":1767584220,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0337 GMT - Malaysia's banking sector outlook may remain bright, supported by potential re-rating catalysts such as write-backs in management overlays and an improvement in net interest margin in 2026, CGS International analyst Winson Ng says in a note. He also expects dividend payout ratios to rise at most banks. Loan growth is forecast at 4.5%-5.5% in 2026, in line with Malaysia's projected GDP growth of 4.6%. Household loans are likely to expand by 5.0%-5.5%, while business loans grow by about 5%, he adds. CGS maintains an overweight rating on Malaysian banks and pegs Malayan Banking as its top pick, citing improving return on equity and one of the sector's highest dividend yields. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"NIM":"纽文精选市政基金"},"translate_title":"马来西亚银行业可能受到净息差改善的支撑——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIM":1.5},"content_text":"0337 GMT - Malaysia's banking sector outlook may remain bright, supported by potential re-rating catalysts such as write-backs in management overlays and an improvement in net interest margin in 2026, CGS International analyst Winson Ng says in a note. He also expects dividend payout ratios to rise at most banks. Loan growth is forecast at 4.5%-5.5% in 2026, in line with Malaysia's projected GDP growth of 4.6%. Household loans are likely to expand by 5.0%-5.5%, while business loans grow by about 5%, he adds. CGS maintains an overweight rating on Malaysian banks and pegs Malayan Banking as its top pick, citing improving return on equity and one of the sector's highest dividend yields. (yingxian.wong@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  January 04, 2026 22:37 ET (03:37 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}