Malaysian Banks' Earnings Likely to Rebound in 2Q — Market Talk

A sequential improvement is expected for Malaysian banks in 2Q as mark-to-market losses that weighed on 1Q earnings stabilize, RHB Investment Bank analyst David Chong says in a note. Some banks also see room to reprice deposits lower, which could help support net interest margins, he says. Most lenders have maintained their 2026 guidance, expecting Middle East tensions and elevated energy prices to be temporary, while healthy loan growth and investment-banking pipelines should support earnings momentum, he reckons. Despite lower earnings projection after subdued 1Q results, sector valuations remain reasonable and dividend yields continue to be attractive, he adds. RHB maintains an overweight rating on Malaysian banks, pegging Public Bank, Malayan Banking and AMMB as its top picks. (yingxian.wong@wsj.com)