KUALA LUMPUR (April 2): CIMB Research has maintain its Neutral recommendation on the banking sector and said the slowdown in loan growth from 13.6% year-on-year in Dec 11 to 11.9% in Feb 12 was par for the course given the less favourable economic climate.
The research house said it continues to project loan growth of 9-10% for 2012.
“The gross impaired loan ratio has stayed at 2.7% since Nov 11, supporting our view of stable asset quality,” it said on Monday.
“We also foresee less of a margin squeeze this year due to more disciplined pricing. We remain Neutral on the sector and continue to like Maybank for its attractive yield,” it said.
The research house said it continues to project loan growth of 9-10% for 2012.
“The gross impaired loan ratio has stayed at 2.7% since Nov 11, supporting our view of stable asset quality,” it said on Monday.
“We also foresee less of a margin squeeze this year due to more disciplined pricing. We remain Neutral on the sector and continue to like Maybank for its attractive yield,” it said.
