Asset Management Firms Poised to Benefit from Stable Equity Averages

According to PL Capital, asset‑management companies (AMCs) are likely to profit from the current stable average equity asset base. The report estimates a 3.6% quarter‑on‑quarter increase and an 11.8% year‑on‑year rise in core earnings for the covered firms. It also notes that loan growth in banks should continue, but vigilance over net interest margins is essential as bond yields climb, potentially squeezing profitability.