SINGAPORE – Analysts across the board are expecting a weaker quarterly performance from the trio of local banks in their upcoming second-quarter business update, amid a continued rise in costs and provisions.
Earnings for the three banks are expected to peak this year, as loan growth tapers off, while the market braces itself for yet another potential round of rate hikes by the US Federal Reserve within the year.
Maybank analyst Thilan Wickramasinghe expects the banks’ net interest income (NII) deceleration to deepen further due to higher funding costs and lower loan volumes.