KUALA LUMPUR: CIMB Equities Research said the banking statistics in Mar 11 continued to paint a rosy picture for banks as (1) loan growth recovered from 12.2% on-year in Feb to 13.2% on-year, (2) loan applications and approvals showed a strong rebound, and (3) the impaired loan ratio dropped 10 basis points on-month.
It said on Tuesday, May 3 this suggests a healthy operating environment for banks and underscores our positive take on their earnings prospects.
We continue to rate the sector an OVERWEIGHT given the potential re-rating catalysts of (1) sustained momentum for investment banking deal flow, (2) stronger growth for banks' overseas earnings, (3) a potential increase in dividend payouts, and (4) collective assessment write-backs.
RHB Capital remains its top pick.
It said on Tuesday, May 3 this suggests a healthy operating environment for banks and underscores our positive take on their earnings prospects.
We continue to rate the sector an OVERWEIGHT given the potential re-rating catalysts of (1) sustained momentum for investment banking deal flow, (2) stronger growth for banks' overseas earnings, (3) a potential increase in dividend payouts, and (4) collective assessment write-backs.
RHB Capital remains its top pick.
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