NII is still the local banks’ largest income source. Evolution of NIMs in 2QFY2025 and banks’ guidance for FY2025 NIM due to changes in Sora, Hibor and Sofr will be closely watched, Modi says.
In a recent interview, Harsh Modi, banking analyst for Southeast Asia at JP Morgan, says four factors are likely to be important drivers for the local banks in next three to six months.
First, net interest margins (NIM), which affect banks’ net interest income (NII) will likely decline.
