0131 GMT - Malaysia's banking sector could achieve 6.4% loan growth in 2025, driven by resilient consumer demand, supportive policies and a strong labor market, TA Securities analyst Li Hsia Wong says in a note. Net interest income is projected to grow 5.3% in 2025 and 5.1% in 2026, supported by stable net interest margins and Bank Negara Malaysia maintaining its policy rate at 3.0%, she says. Non-interest income could rise 9.1% in 2025, boosted by higher demand for bancassurance, wealth management products and capital market activity, she adds. Wong reckons the sector remains an attractive investment, with price-to-book valuation of 1.06X for 2025 and return on equity of 10.2%. TA Securities maintains an overweight rating on Malaysia's banking sector, pegging Public Bank, CIMB Group and Malayan Banking as top picks. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
December 25, 2024 20:31 ET (01:31 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.