Mixed H1 2022 earnings expected; financials, select industrials set to outperform: analysts

CORPORATE earnings for the first half of 2022 are expected to be mixed as companies deal with the impact of rising input costs from higher inflation and a weakening macroeconomic environment.

Analysts The Business Times spoke to were generally optimistic about the financial sectors’ earnings, although they also sounded a cautious note over a potential squeeze in margins for the consumer-staples and discretionary sectors.

Maybank Securities head of research, Singapore, and head of regional financials Thilan Wickramasinghe said he expects banks to see net interest margin improvements.