CGS-CIMB: Our economists now expect an end-2020 OPR of 1.75% , which implies no more OPR cuts for the rest of the year.
A cut in the key benchmark interest rate would have impacted net interest margin of banks, resulting in lower earnings. CGS-CIMB Equities Research said it estimated that every 25bps OPR cut would lower banks’ financial year 2021 forecast net profits by around 2%. “Our economists now expect an end-2020 OPR of 1.75% , which implies no more OPR cuts for the rest of the year.“On a preliminary basis, we estimate this could potentially lead to 1%-2% upgrades in our net profit forecasts for banks.
For 2020, it expects the sector’s NIM to be compressed by 14bps while a flat interest margin, on average, is expected for 2021.
Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más: