The argument for the downgrade refers to the implementation of Malaysian Financial Reporting Standards (MFRS) 9. Somewhat similar to CET1 ratio, the provision methodology would change under MFRS 9.
It was estimated that under MFRS 9, it would negatively impact the net profit of banks in the future.
See the full report below including sensitivity analysis of respective banks.
Well if you saw the headline on today’s The Edge Financial Daily, it might seem clear that the momentum would shift towards banking with results coming out soon.
Take a look at what CIMB has to say after reviewing the whole quarter 1 for our Malaysian banking sector.
Improved loan growth but mortgage loan growth still isn’t making a comeback for obvious reasons. See CIMB’s report by clicking on the picture link below!
CIMB and Maybank posted their outlook on Malaysian Banks.
CIMB Research touches more on asset quality test which declared passed with flying colours and Maybank previews on the current loan situation for all banks.
I think we missed this issue from HSBC over the holidays…
Check out this report on Fintech by CIMB. Not the best but still something to look at…