Equity Analysis /

MY : Banks - A pullback in total provision in Feb 22

    Winson Ng
    Winson Ng

    Financial Services Analyst

    31 March 2022
    Published byCGS-CIMB

    Loan growth sustained at 4.7% yoy at end-Jan 22 and end-Feb 22 (+4.7% yoy for household loans and +5.5% for business loan in Feb 22). We expect banks’ 1Q22F LLP to be largely stable or lower yoy given the mom decline in the industry’s total provision in Feb 22. Reiterate sector Overweight premised on the expected continuous recovery in earnings growth in 2022F, underpinned by OPR hike and lower LLP.