Equity Analysis /

MY : Banks - Projecting CNP growth of 4.1% in 2022F

    Winson Ng
    Winson Ng

    Financial Services Analyst

    25 March 2022
    Published by

    Banks’ 4Q21 results were above our expectations with six out of eight Malaysian banks reporting higher-than-projected 4Q21 earnings. We expect banks’ 1Q22 CNP to be stable qoq but lower yoy due to additional CM taxation. Project 4% CNP growth in 2022F on 16% decline in LLP. Reiterate Overweight on banks given the expected expansion in NIM following a potential OPR hike in 2H22F and LLP downcycle.