NEW YORK, Oct 17 — Goldman Sachs will limit loan growth in one of its new business areas if it sees a marked deterioration in credit quality, potentially jeopardising new Chief Executive David Solomon's task of boosting revenue by US$5 billion…
NEW YORK, Oct 16 — US stocks ended lower in a choppy trading session yesterday, dragged down by technology stocks amid lingering worries over interest rates and corporate earnings. The benchmark S&P 500 index teetered between positive and…
NEW YORK, Oct 15 — Bank of America Corp reported a better-than-expected rise in quarterly profit today as the second-largest US lender reined in costs, while higher interest rates and loan growth helped offset lower bond trading revenue. Like its…
KUALA LUMPUR, Oct 10 ― Malaysia’s loan growth will likely taper for the rest of this year as investors wait for Putrajaya to announce its Budget 2019, Fitch Solution Macro Research (FSMR) forecasted. However, the Fitch Group unit maintained its…
PETALING JAYA: AmResearch expects the banking sector’s core earnings growth to come in lower at 5.8% this year from the earlier projection of 7.6% in anticipation of slower economic growth.
The Q2 core earnings fell marginally by 0.4% quarter-on-quarter after excluding CIMB’s one-off gain of RM928 million from the partial disposal of CIMB-Principal Asset Management and CIMB-Principal Islamic Asset Management and an additional gain of RM11 million from the sale of a 50% stake in CIMB Securities International as well as adding back Hong Leong Bank’s one-off loss of RM27 million from the dilution of stake in its associate Bank of Chengdu.
However, first-half earnings registered a commendable 10.3% growth.
For 2019, the research house foresees the sector’s earnings to grow 6.2% in 2019, with the inclusion of BIMB’s expected improvement in profits.
AmResearch also expects a better loan growth in the second half of the year with consumer loans gaining traction in the third quarter as consumer spending rises with the tax holiday, while business loans are expected to improve judging from better momentum for domestic non-household loans in the recent months.
“We retain our loan growth assumption of 5% for 2018 with a slight downside bias based on a GDP growth of 4.8-5% for the year.”
The banking sector’s average net interest margin (NIM) fell 6 basis points qoq to 2.3% in Q2 after an Overnight Policy Rate (OPR) hike of 25 basis points in January 2018.
“The decline of the NIM in the second quarter was due to the upward repricing of deposit rates after the OPR increase in Q1 and higher funding cost from deposit competition moving close to the adoption of the net stable funding ratio. We expect pressure to remain on funding cost in the near term due to deposits’ competition.”
Nevertheless, AmResearch expects NIM for the second half to be either flat or slightly compressed compared with the first half as the deposit repricing from the earlier OPR hike has already largely worked its way through banks’ funding cost.
Despite an uptick in the gross impaired loan ratio for the banking sector in Q2, it said the sector's asset quality is expected to remain stable in the second half.
KUALA LUMPUR, Aug 30 — Malayan Banking Bhd (Maybank) is confident of a positive loan growth in Malaysia for the second half of the year, in view of the significant growth momentum in the consumer segment. Group Chief Financial Officer Datuk Amirul…
KUALA LUMPUR, Aug 30 — RHB Bank Bhd is positive on achieving better results for the financial year ending Dec 31, 2018, following its strong performance in the first six months (H1), said Group Managing Director Datuk Khairussaleh Ramli. “We…
KUALA LUMPUR: CIMB Group Holdings Bhd, which posted a record net profit of RM3.29 billion for the first six months ended June 30, 2018 (1H18), expects a record net profit to ensue for the full year on a stronger performance in 2H18 partly driven by improvement in loan growth.
Group CEO Tengku Datuk Seri Zafrul Aziz said CIMB is on track to meet its loan growth target of 6% for this year, compared with a weaker-than-expected 0.2% last year hit by its Indonesian business.
It saw a loan growth of 3.4% for 1H18, dragged down by the weakening of rupiah in Indonesia. Excluding foreign exchange fluctuations, its 1H18 loan growth would have been 7%.
“We're still keeping our loan growth target. 1H18 was slower and we're optimistic that in 2H18 we will catch up,” Zafrul told a press conference after announcing its 1H18 financial results here today.
“For 2H18, we hope to sustain (performance). It's been a strong two months (July-August), we've seen a pickup in capital markets (from slower capital market activities in 1H18), but also in the region in Thailand and Singapore. We're optimistic. Judging from the pipeline that we have, we should see the same, if not better performance in 2H18,” he added.
Zafrul said CIMB is focused on achieving its T18 targets, subject to recovery of capital markets, and continued improvement in asset quality across Indonesia, Thailand and Singapore.
Saying the worst is over for its Indonesian business, he said a rate increase is expected in Indonesia to stabilise the rupiah. On the macro side, it is wary of the currency impact and is also mindful of the election in Indonesia. However he said CIMB Niaga has done well in term of its bottom line, adding that it was the best performing bank in 1H18 in Indonesia.
“If you look at the numbers on Indonesia, the asset quality is better. The problem is the loan growth and this is something that we need to push further and at the same time we're tracking the industry.”
For the second quarter ended June 30, 2018, CIMB's net profit jumped 80% to RM1.98 billion from RM1.10 billion a year ago bolstered by a RM928 million gain from the sale of 20% of CIMB-Principal Asset Management and 10% of CIMB-Principal Islamic Asset Management. Revenue rose 12% to RM4.86 billion from RM4.33 billion in the previous corresponding quarter.
CIMB posted a record net profit of RM3.29 billion for the first half of 2018, up 44% from RM2.28 billion a year ago, bolstered by the disposal gain. Excluding the gain, CIMB's 1H18 earnings was RM2.36 billion, translating to a 3.3% year-on-year growth. Revenue rose 5.5% to RM9.17 billion from RM8.69 billion in the previous year.
Zafrul said CIMB is finalising its next mid-term growth plan post-T18, which will be premised on customers, people and sustainability, among others. He added that any changes to its management are based on performance and will be decided by the board and not one shareholder.
KUALA LUMPUR: CIMB Group Holdings Bhd is on track to meet its loan growth target of 6% for this year with the stronger performance expected for the second half of the year, said group CEO Tengku Datuk Seri Zafrul Aziz.
Its loan growth for the first half of the year stood at 3.4%, dragged down by the weakening of rupiah in Indonesia.
CIMB posted a record net profit of RM3.29 billion for the first half of 2018, bolstered by a gain from the sale of 20% of CIMB-Principal Asset Management and 10% of CIMB-Principal Islamic Asset Management.
At a media briefing today, Zafrul also said any changes to its management will be decided by the board and not one shareholder.