Public Bank sees net interest margin to drop further in 2016

KUALA LUMPUR: Public Bank Bhd expects a further dip in net interest margin (NIM) for 2016 following a eight basis-point contraction last year due to higher market deposit rate.

During the company's AGM today, managing director and CEO Tan Sri Tay Ah Lek said this is in anticipation of continued higher deposit rate in view of intense competition and stringent funding condition.

In addressing low NIM environment, he said the group will proactively balance between the growth and cost of deposit.

"We'll focus on increasing the growth in the low cost current account and saving account deposit," he noted.