RHB Research estimates OPR hikes to raise banks' earnings by 1.8pct

RHB Research estimates that the overnight policy rate (OPR) hikes of 25 basis points (bps) in May and similarly in July by Bank Negara Malaysia would raise the banking sector’s net profit by 1.8 percent for the financial year 2022 (FY22).

In its sector update on the banking sector today, the research house said a potential rate hike of 25bps in September would further improve the banks’ cumulative earnings to 2.2 percent.