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Results wrap: Banks navigate interest rates, inflation, growing headwinds

Goola Warden
Goola Warden5/4/2022 10:21 PM GMT+08  • 9 min read
Results wrap: Banks navigate interest rates, inflation, growing headwinds
Rising interest rates boost local banks' net interest income but inflation could dampen customers' prospects
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The main focus this year is for the local banks to navigate between tailwinds from higher interest rates, headwinds on wealth management income due to market volatility and the impact of inflation on their customers. Rising interest rates are net positive for banks.

For all three, this trend will have a positive impact on net interest income. The key is that the positive impact needs to more than offset the headwinds created on the wealth management front and the impact of inflation and rising rates on customers.

Rising rates boost net interest income

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