Malaysian Banks Under Pressure

Malaysia's banking sector remains tepid, with loans growths in April declining 6.3% y-o-y. The landscape remains competitive as banks compete for deposits. Impairments in the industry are still a concern, thus, pressuring Net interest margins (NIMs). Wong Li Hsia, Analyst at TA Securities projects loan growths to be stable at 5.8% supported by a stable interest environment and job market.