Maybank: Banking sector outlook now neutral - The Manila Times
Read this in The Manila Times digital edition. MAYBANK Investment Banking Group has downgraded its outlook for the Philippine banking sector from "overweight" to "neutral" on account of declining banking loan growth and peaking of net interest margin (NIM). "With universal and commercial banks (UB/KB) loan growth decelerating... and the anticipated NIM compression in the fiscal year 2024, we downgrade our view on the banking sector to neutral," Maybank IBG said in a report on Monday. "The government's infrastructure programs are a potential tailwind for the sector, but we do not foresee this progress until the second half of 2024, at the earliest," it added. Although there is potential for further growth in NIMs due to the normalization of funding expenses and a recent reduction in reserve requirements, Maybank anticipates only a slight enhancement on a quarter-on-quarter basis. This is due to a significant portion of adjustable-r...