Malaysia Banks Likely to Grow Steadily in 2026 -- Market Talk

Dow Jones2025-12-31

0132 GMT - Malaysia's banking sector may stay on a steady growth path in 2026, supported by resilient loan demand and stable asset quality, TA Securities analyst Li Hsia Wong says in a note. Loan growth is projected at 5.7%, driven by consumer and business lending, she says. Effective liability management and the pursuit of low-cost deposits will be key to preserving margins, with net interest margin likely narrowing 3 bps to about 1.95%, assuming no further policy rate cuts, she adds. Non-interest income may grow 9.6%, supported by cross-selling, trading gains and structural initiatives. Larger banks may benefit from scale and regional strength, while smaller players rely on partnerships, mergers and acquisitions, Wong says. TA Securities maintains an overweight rating on Malaysia's banking sector, pegging CIMB Group, Malayan Banking and Alliance Bank Malaysia as top picks. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

December 30, 2025 20:32 ET (01:32 GMT)

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Non-interest income may grow 9.6%, supported by cross-selling, trading gains and structural initiatives. Larger banks may benefit from scale and regional strength, while smaller players rely on partnerships, mergers and acquisitions, Wong says. TA Securities maintains an overweight rating on Malaysia's banking sector, pegging CIMB Group, Malayan Banking and Alliance Bank Malaysia as top picks. 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