Equity Analysis /

MY : Banks - No OPR cut in Jan 21 MPC meeting

    Winson Ng
    Winson Ng

    Financial Services Analyst

    20 January 2021
    Published byCGS-CIMB

    BNM has maintained the overnight policy rate (OPR) at 1.75% at today’s MPC meeting, in line with the expectations of our economist. Our economist sees the possibility of a 25bp OPR cut in 1H21. If this materialises, it would reduce our projected FY21F net profit by about 2.2%. Maintain Overweight on banks due to expectations of a better outlook for NIM and lower loan loss provisioning in 2021F.