Banks seen posting lower income in.

Local banks are expected to post lower profits this year and the next as the global economy slows down following recent terrorist attacks on the United States.

Also, a major concern is how banks would address the industry's rising nonperforming assets - a combination of nonperforming and restructured loans, and foreclosed assets - which economists and bankers polled by BusinessWorld said would provide a major drag on banks' profitability.

A further rise of these unwanted assets is expected to be forthcoming as more borrowers are likely to default on their loan obligations once the local economy begins to feel the pinch.

International ratings agency …