KUALA LUMPUR (May 5): The recently announced digital banking licence winners are not seen as major threats and can co-exist with their conventional counterparts, according to analysts. Given the archaic banks’ bigger balance sheet, they have more budget headroom on an absolute monetary basis to spend and innovate versus digital banks,” Chan said. He also maintained his “overweight” call on the banking sector given that the digital banks are not expected to be major threats and can co-exist with their conventional counterparts. "We expect the venture to be positive for RHB Bank in the longer term when the digital bank turns profitable. “Our sector top picks are Hong Leong Bank Bhd (add; TP: RM21.80), RHB Bank (add; TP: RM7) and Public Bank Bhd (add; TP: RM5),” he added.

Source: The Edge Markets May 05, 2022 17:33 UTC