The three local banks have more or less resumed their pre-Covid dividends. Their growth and digitalisation strategies bear some differences but all three announced stable or improved cost-toincome ratios and have reaped revenue and cost efficiencies from digitalisation efforts.

Net profit levels have improved from a year ago although quarterly trends at the pre-provisioning profit levels were a bit volatile.

Earnings are important for banks because they determine dividends paid to investors. Earnings also form part of retained earnings and revenue reserves for banks, which boost their net asset values, and, hence, valuations. Earnings also impact ROE and are a gauge as to whether the banks’ ROEs meet their cost of capital.

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