This was despite a moderation in loan growth and current accounts and savings accounts (Casa). Maybank Investment Bank (Maybank IB) said that loan applications increased month-on-month (m-o-m) by 29% in February and 23% in March after contracting from August 2022 to January 2023. “Including bank loans, total industry credit growth was 4.9% y-o-y, versus 5.3% y-o-y in February 2023,” he said. MIDF's top picks for the sector include Public Bank Bhd, with a "buy" call and a target price (TP) of RM5.08, and RHB Bank Bhd (buy; TP: RM6.74). Meanwhile, Maybank IB has made several "buy" calls for the sector, including CIMB Group Holdings Bhd (TP: RM6.60), Hong Leong Bank Bhd (TP: RM24.10), RHB Bank (TP: RM7.10), Hong Leong Financial Group Bhd (TP: RM22.20), AMMB Holdings Bhd (TP: RM5.15), and Alliance Bank Malaysia Bhd (TP: RM4.00).

Source: The Edge Markets May 02, 2023 16:30 UTC