Why are the operating cash flows of local banks negative, yet our local bank stocks are still considered good buys?

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Banks primarily profit through lending (money goes out so it's an outflow). Borrowers do not repay (inflow) full sum at one go, but smaller portions over time. So outflow will be more than inflow, hence negative.

Negative cash flows shows that people are borrowing from these banks and in turn the banks will profit.