Malaysian Banks 1Q Earnings Likely Resilient — Market Talk

Malaysian banks' 1Q earnings should remain resilient, driven by steady net interest income, with potential upside from noninterest income, CIMB Securities analyst Ei Leen Tan says in a note. Sector performance could be supported by robust loan growth, stable funding conditions and modest margin expansion, she says. Noninterest income is expected to stay firm, supported by transactional liquidity, wealth management, market trading and treasury-related activities, she adds. CIMB maintains an overweight rating on the Malaysian banking sector, citing a defensive earnings profile and dividend visibility. RHB Bank, Public Bank and Hong Leong Bank are its top picks. (yingxian.wong@wsj.com)