Banks’ earnings still decent, says report

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Banks’ earnings growth target of 5%, although not exciting, was decent, as were their dividend yields.

Global financial markets to weigh on fee income

“The rebound in consumption and business activities from the depressed levels during the lockdowns, should see banks achieving mid-single digit loan growth for 2022. That said, expectations for a better 2H22 and 2023 were however, beginning to wane as risks to growth were tilted towards the downside, the research house said.

It expects the sector credit cost to be a lower 40 basis points in 2022 and that the rise in interest rates can be absorbed by borrowers with no material negative impact on asset quality.

 

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