Well usually we take the view point from our country’s banking research. This time around, let’s see how we are in the viewpoint of foreign bank such as the Singapore’s DBS.
This is the latest report from Credit Suisse where it valuates Malaysian banks after the implementation of Malaysian Financial Reporting Standards 9 (MFRS 9).
This is a good report from CIMB with tonnes of information and chart that show trends in fundamental numbers for our country’s banking sector.
Click on pic for report!
Take a look at the whole summary of bank’s report card for 2nd quarter of 2017.
We think that banks had rallied and recovered the losses trading fair to what it is now but we still think that you should hold if you have already seen capital gains holding from last year plus dividend payout that were made.
From now on, the movement is likely broad market related and we do not think that the major banking blue chip would outperform the KLCI. But we are still holding it rather than returning to cash as most stock seem fairly valued too.
What’s your take?
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.
Today’s Main Page on The Edge
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…