Bank: Earnings Drop 11.7% QoQ Amid Tax Hike & NIMs Squeeze - By IIS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We preview IIS banking universe 4QCY24 result, where Earnings are projected to decline by 11.7% QoQ, primarily due to NIM compression from lower interest rates and a retrospective 5% increase in corporate tax, which became applicable in Dec&rsquo;24, further pressuring bottom lines.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Net Interest Income (NII) likely to fall by 8.7% QoQ as most asset repricing impact was realized in 2Q/3Q, while loan yields were dragged by below-KIBOR lending to meet ADR targets, which were abolished in late Dec&rsquo;24.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Industry deposits declined by 2.4% QoQ, while advances...