Aggregate Core Net Profit (Core NP) up by +0.6%qoq. Earnings: Relatively stable, NIM and NOII are central focus. However, on a more positive note, future quarters may see possible positive revisions to NCC guidance (they were initially too conservative). Nearly all banks revised their NIM guidance downward. MIDF analysts give their guidance for the sector and it’s more skewed towards the negative, largely due to the slower-than-expected NIM recovery and potential asset quality irritation. NOII improvement was expected, being guided for as a core earnings driver (which came true, but it was unevenly distributed). NIM compression this time was a lot heavier than previously guided for (recall that banks were guiding for “stable-to-minor” compression in 1Q23). Mediocre Banking Sector Results: NIM And NOII Centre Of Discussion By Editor - SeptemThe banking sector saw a mediocre season with earnings entirely within expectations, this is despite some surprises in tailwinds and headwinds.
