KUALA LUMPUR: BIMB Holdings Bhd expects to be temporarily hit by the cut in the Overnight Policy Rate (OPR), but foresees a neutral impact in its full year earnings for 2019, helped by the boost in its fee-based income.
Speaking to reporters at its AGM here today, CEO Mohd Muazzam Mohamed said in terms of fee-based income, areas like wealth management and bancatakaful will help to negate the impact.
BIMB is seen by analysts to be one of the two most affected banks in a falling interest rate climate.
Bank Islam Malaysia Bhd has lowered its base rate and base financing rate by 26bps following the OPR cut.
The bank’s base rate has been reduced to 3.77% per annum from 4.03%, while its base financing rate has been reduced to 6.72% per annum compared with 6.98% earlier.
Source: The Sun Daily