Malaysia’s largest banks project slower loan growth in H2; Hong Leong, RHB among analyst favourites

MALAYSIA’S largest 5 banks by asset size saw positive loan growth for the quarter ended Jun 30, but expect this pace to moderate in the rest of the year in the face of expected upcoming interest rate hikes and global headwinds.

By Wednesday (Aug 31), all 5 banks – Malayan Banking (Maybank), CIMB Group, Public Bank, RHB Bank and Hong Leong Bank – had announced their latest financial results. Net profit rose for CIMB, Public Bank, and Hong Leong Bank, but fell for Maybank and RHB.

Overall, analysts said the major banks’ performances were within expectations. Although banks are taking a more conservative outlook on loan growth, analysts are positive on Malaysia’s banking industry as loan applications continued to climb in July.