KUALA LUMPUR: The earnings growth of non-bank financial institutions (NBFI) is expected to hold up in 2024, supported by a decent macroeconomic backdrop.
RHB Research said it remains bullish on insurers but is more selective towards the non-bank lenders given the sub-sector’s mixed risk-reward offerings.
“We are expecting a moderate year for insurers under our coverage for two key reasons, namely, an expected slowdown in car sales coming off a record-high year in 2023 and moderation in total investment returns, largely due to the absence of a low-base effect.
“Nevertheless, stabilising claims and reinsurance costs, as well as a pickup in life insurance or family takaful contributions should enable mid-single digit bottom line growth, at the least,” the research house said in a note yesterday.
...