Banking - The sale of non-performing assets increases banking recovery income

Banking - The sale of non-performing assets increases banking recovery income A number of banks continue to strive to optimize the sale of assets from non-performing loans, including those that have been written off. This is done to reduce the ratio of non-performing loans (NPL) as well as increase non-interest income for the bank. Based on their financial reports, during the first three months of 2024, or Quarter I-2024, large banks, especially state-owned banks, recorded recovery income from asset sales, which has increased on an annual basis. (Source: Kontan) Comment : We believe sales of non-performing assets will continue and benefit banks recovery income. Despite being considerably insignificant to overall bank income, other income and additional catalyst growth will overall help bank earnings amid the continuing NIM pressure era. All in all, with better risk metrics, banks are likely to continue to stay healthy and thus overall support earnings growth. Maintain the OW stance for the banking sector.