RHB Investment Bank anticipates improved performance for the Malaysian banking sector in the second quarter of 2026. This positive outlook is driven by a projected stabilization of mark-to-market losses, which have previously impacted earnings. Improved investor confidence and increased wealth management activity are also contributing factors to the expected growth. Despite anticipating only modest earnings growth overall, RHB maintains an “Overweight” rating for the sector, indicating a positive investment outlook. The analysis suggests attractive yields will remain a key draw for investors. This forecast provides a cautiously optimistic view of the banking landscape in Malaysia for the coming quarter. The report highlights a confluence of factors supporting a potential upturn in the industry’s fortunes.