Posted by crywithouttears > 2020-05-12 11:37 | Report Abuse

KUALA LUMPUR: Dropping accrued interest of hire-purchase (HP) loans and fixed-rate Islamic financing will be more negative for Public Bank Bhd, Malayan Banking Bhd, AMMB Holdings Bhd and Hong Leong Bank Bhd.

Affin Hwang Capital named the four as those with the highest exposure to HP loans particularly.

Public Bank has the highest exposure with HP loans making up 15.7 per cent or RM51.77 billion of its total outstanding loans as at end-2019.

HP loans accounted for RM49.9 billion or 9.5 per cent of Maybank's total outstanding loans in Malaysia of RM523.49 billion as at end-2019, Affin Hwang said.

The firm said the banking sector would have to take a larger impact of a "modification loss'" on their income statements if Bank Negara Malaysia heeds the Finance Ministry's call to waive the accrued interest.

A "modification loss" is the difference in the gross carrying amount of a loan (or financial asset) based on the difference between the present value (PV) of the modified contractual cash flows vis-à-vis the PV of the original contractual cash flows before any modification to the terms of the loan.

"Public Bank, Hong Leong Bank, Maybank. Affin Bank and AMMB may potentially have a larger modification loss being recognised in their income statement vis-à-vis banks with more variable rate loans arising from the moratorium period granted," Affin Hwang said today.

The firm maintained its sector "underweight" call, as it expects a deterioration in earnings while the introduction of additional measures by Bank Negara had put further pressure on banks' liquidity and funding.

Putra Business School associate Prof Dr Ahmed Razman Abdul Latiff estimated that banks would incur some RM2 billion income losses if the accrued interest on the loans is lifted.

Banks that offer predominantly fixed rate financing would suffer more, he added.

Razman said interestingly, the major shareholders of all nine local banks listed on Bursa Malaysia were government institutions such as the Employees Provident Fund, Permodalan Nasional Bhd and Khazanah Nasional Bhd.

"Therefore, if these banks post reduced profits for the year, their depositors and investors will receive lower dividends."

Razman said Bank Negara must understand that the moratorium was introduced because some individuals were having hard times paying their loans during the Movement Control Order.

"Perhaps the middle ground is to allow moratorium for six months without charging the accrued interest but the banks will receive some form of tax exemption so that their annual profits will not be affected much.

"This way, the affected individuals can still benefit from the moratorium and banks will not suffer from the modification loss," he said.

Posted by Jeffreyteck > 2020-05-12 12:04 | Report Abuse

"Human rights issues and directors’ pay"...
Anyway, is good for talking only as those with power is expected to harvest and shared the most instead of share prosperity.

https://www.theedgemarkets.com/article/human-rights-issues-and-directors-pay

Posted by RotiPunHangus > 2020-05-12 12:37 | Report Abuse

Are we expecting huge losses in upcoming quarter result? I'm worried Maybank will incur substantial losses from Hire Purchase loans writeoffs. Why PN government wants all banks to not charge any interests? This will destroy all banks' earnings

Posted by crywithouttears > 2020-05-12 12:39 | Report Abuse

Maybank is koyak already

Posted by Stockhunter88 > 2020-05-12 12:40 | Report Abuse

Wait below 740 then masuk

Posted by i3 newbie > 2020-05-12 16:45 | Report Abuse

Wait 7.3x for almost like one month, newbie still dare not masuk hehe...

Posted by lip1022 > 2020-05-13 16:08 | Report Abuse

What happen if you Invest Rm5,000 in Malaysia bank (2010-2020) https://www.youtube.com/watch?v=ebsOR8JZnrk

Posted by tkl88 > 2020-05-13 16:37 |

Post removed.Why?

Posted by i3 newbie > 2020-05-13 19:37 | Report Abuse

FBMKLCI up, MAYBANK down, counter intuitive ma ...

Posted by masterus > 2020-05-14 22:57 | Report Abuse

So when Trump called for the Federal Reserve to to “accept the GIFT” of negative interest rates on Tuesday, a layman might have reasonably interpreted his proposal as the cockamamie fantasy of a certified crank. But the idea that America’s central bank should set benchmark interest rates below zero — which is to say, that it should start taxing the reserves of commercial banks instead of paying interest on them — is not peculiar to Trump. In fact, many respected economists believe that the U.S. should embrace the policy, which is already in effect in Europe and Japan. Further, as of earlier this week, Wall Street investors were betting that the Fed will bring interest rates below zero by mid-2021 in order to promote recovery from the coronavirus crisis.

Posted by hingwah717 > 2020-05-15 14:31 | Report Abuse

Hi may i ask if any of you received your dividend mailed to you already? I still haven't received my cheque. Didn't subscribed to e-dividend last time.

Posted by Tedinvestor > 2020-05-15 18:06 | Report Abuse

Cheque mail by post might takes a week or 2.

Posted by harold8990 > 2020-05-15 18:15 | Report Abuse

U will receive within this month no worries

Posted by hingwah717 > 2020-05-15 18:26 | Report Abuse

Ok thanks a lot.... normally very fast...must be due to cmco....

Posted by masterus > 2020-05-16 07:31 | Report Abuse

May 15, 2020 5:09 pm by James Politi and Kiran Stacey in Washington
The Trump administration has increased the pressure on Huawei by tightening export controls on the Chinese telecoms group and its suppliers, heightening tensions with Beijing that have flared during the coronavirus pandemic.

The US commerce department accused Huawei of continuing to use American technology in its semiconductor designs, despite having been subject to export controls since May 2019.

The move to close loopholes in those controls came at the end of a week in which the Trump administration prevented a government pension fund from investing in Chinese stocks and President Donald Trump suggested the US could “cut off the whole relationship” with China.

Posted by masterus > 2020-05-16 07:37 | Report Abuse

Australia is the most China-reliant economy in the developed world, leaving it vulnerable to blowback from Prime Minister Scott Morrison’s calls for an independent probe into the origins of the coronavirus.

Authorities in Beijing wasted little time responding. First, their ambassador warned Chinese citizens may no longer visit Down Under or choose it as the destination to educate their children. And this week, China announced an anti-dumping probe into barley exports and the suspension of meat imports from four Australian processing plants.

The big ticket items of iron ore, coal and natural gas that China needs to build and fuel its economy have so far remained unmentioned. But the barley and beef blows -- which authorities from both sides have sought to downplay -- can be interpreted as shots across the bow of Australia’s economy.

Posted by smallbird9 > 2020-05-17 14:06 | Report Abuse

More loans to turn bad for Malaysian banks
https://www.theedgemarkets.com/article/more-loans-turn-bad-malaysian-banks

Posted by smallbird9 > 2020-05-17 14:12 | Report Abuse

So those who goreng properties like using compressed loan tactics alike cheating banks in order to hold multiple properties will survive nowadays? Supply gluts and lack of demands due to loss of jobs and businesses. You've seen how these properties goreng kakis especially the sifus nowadays suddenly revealing their trade secrets by having many sohai subscribe to their advice classes seminars forums to learn a few things. Too late into the games after property bull run. Maybank sure will have more Non-Performing-Loans writedown. Good luck for those who invest into Maybank. Hope this warn u all better before collapse.

Posted by smallbird9 > 2020-05-17 14:22 | Report Abuse

The logic is that...so many SME and big corporations suffer from covid19 mco lockdown, u think banks are not the ones absorbing the most losses???? Truth is... BANKS ARE THE ONES ABSORBING THE MOST LOSSES IF ALL SME and CORPORATIONS CRASHING DOWN!!!!

Posted by smallbird9 > 2020-05-17 14:23 | Report Abuse

The logic is that...so many SME and big corporations suffer from covid19 mco lockdown, u think banks are not the ones absorbing the most losses???? Truth is... BANKS ARE THE ONES ABSORBING THE MOST LOSSES IF ALL SME and CORPORATIONS CRASHING DOWN!!!!

Posted by smallbird9 > 2020-05-17 14:27 | Report Abuse

See what Warren Buffett did recently....He dumped Banking Stocks!! After sold Airlines Stocks, he sold Banking Stocks!!!!

After Airlines, Warren Buffett Is Preparing to Dump Bank Stocks
https://www.ccn.com/after-airlines-warren-buffett-preparing-dump-bank-stocks/

Berkshire Sells Majority of Goldman Stake, Trims JPMorgan
https://www.bloomberg.com/news/articles/2020-05-15/buffett-s-berkshire-trims-jpmorgan-goldman-stakes

Posted by stockraider > 2020-05-17 14:41 | Report Abuse

Not true mah...YES warren buffet sell banking stock but then buy into another banking stock loh...!!

Raider see just a rebalancing of its bank portfolio position mah..!!

Posted by smallbird9 > May 17, 2020 2:27 PM | Report Abuse

See what Warren Buffett did recently....He dumped Banking Stocks!! After sold Airlines Stocks, he sold Banking Stocks!!!!

After Airlines, Warren Buffett Is Preparing to Dump Bank Stocks
https://www.ccn.com/after-airlines-warren-buffett-preparing-dump-bank-...

Berkshire Sells Majority of Goldman Stake, Trims JPMorgan
https://www.bloomberg.com/news/articles/2020-05-15/buffett-s-berkshire...

Posted by EDINVESTOR > 2020-05-17 16:44 | Report Abuse

Yeah bank going bankrupt soon. Withdrew all your money from your bank account and put it inside your fridge. Warren Buffet said so. Idiot hahaha

Posted by EDINVESTOR > 2020-05-17 16:46 | Report Abuse

Buy during negative days and get rewarded in the future. TUN Tan siew sin said

Posted by smallbird9 > 2020-05-17 23:22 | Report Abuse

U said Warren Buffet rebalancing his banking stocks portfolio??? Sorry I can't stop laughing really. Goldman Sachs and JP Morgan are considered the 2 best

Posted by smallbird9 > 2020-05-17 23:34 | Report Abuse

Do u know what's the Fixed deposit interest rates by Maybank? 1 month is 1.9% and 2.1% for 12 months. Can't even beat current inflation rayes

Posted by smallbird9 > 2020-05-17 23:34 | Report Abuse

*rates

Posted by smallbird9 > 2020-05-17 23:36 | Report Abuse

If banking stocks is good, Warren Buffet won't sell out lah but he sold oh

Posted by smallbird9 > 2020-05-17 23:57 | Report Abuse

If interest rates gone negative like Switzerland and soon US..maybe Malaysia too. Wonder banks will survive with negative rates lol

Posted by neobcomj > 2020-05-18 08:48 | Report Abuse

A negative interest rate means that the central bank (and perhaps private banks) will charge negative interest. Instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank.

Posted by masterus > 2020-05-18 10:51 | Report Abuse

If Malaysia reach negative interest rate, ringgit will go to 5~6 against usd

Posted by masterus > 2020-05-18 10:52 | Report Abuse

At 1% interest rate maybe

Posted by masterus > 2020-05-18 10:54 | Report Abuse

Australia, New Zealand, Canada, UK and USA maybe will reach negative interest rate bcause already near zero interest rate

Posted by masterus > 2020-05-18 10:56 | Report Abuse

If happen, all their money may flow to Asian countries with higher interest income.

Posted by aliyusof > 2020-05-18 14:57 | Report Abuse

Negative interest or not, banks will still make money unles everyone keeps their cash under the pillow or companies all do business in cash without borrowing.

Posted by EDINVESTOR > 2020-05-18 21:27 | Report Abuse

Smallbird9 your brain not working probably. I suggest in future if you want to borrow loans for car or house, borrow from ah long. Don't approach bank. Warren buffet not God.

Posted by alvin5588 > 2020-05-19 14:57 | Report Abuse

Flying..

Posted by andeyboy > 2020-05-19 16:06 | Report Abuse

flying up... i can see EPF is buying Maybank shared. is good sign

Posted by stkoay > 2020-05-19 18:16 | Report Abuse

https://www.cnbc.com/2020/05/18/dividend-rich-bank-stocks-are-late-to-the-rally-but-their-bounce-may-be-a-good-sign-for-market.html

Mike Mayo, Wells Fargo banking analyst, said there was also positive news for the group, when Warren Buffett’s Berkshire Hathaway disclosed that its holdings continue to be heavily in banks, even though it sold a large chunk of a long-held stake in Goldman Sachs and shed some of its JPMorgan stock.

“Buffett still has basically his biggest investment in history in the banks. That’s quite a statement. He’s not afraid to bail when something’s not going the way it should. The best investor of all time has his biggest investment ever, less 3%, in banks. Maybe he knows something the market is missing,” Mayo told CNBC in an email.

Mayo notes that Buffett’s holdings remain in Bank of America, Bank of New York Mellon, and M&T Bank. Berkshire also built higher stakes in PNC and U.S. Bancorp, Mayo added.

Posted by stkoay > 2020-05-19 18:24 | Report Abuse

https://www.theedgemarkets.com/article/indonesia-surprises-holding-key-rate-amid-volatile-market

Posted by stkoay > 2020-05-19 20:37 | Report Abuse

https://www.theedgemarkets.com/article/maybank-indonesia-1q-net-profit-leaps-30-feebased-income

Posted by WarrenPuffet > 2020-05-20 18:35 | Report Abuse

https://www.bbc.com/news/business-52733706

Posted by Ivan89 > 2020-05-21 13:02 | Report Abuse

good result

Posted by Vincentkok > 2020-05-21 13:03 | Report Abuse

why nta drop?

Posted by kochun > 2020-05-21 14:19 | Report Abuse

Found this within the Financial Statement :

Maybank Group previously disclosed that it had set its Headline Key Performance Indicator (KPI) for Return on Equity (ROE) of 10.0% to 11.0% for FY2020, barring any unforeseen circumstances. Given the significant weakening outlook in the economic landscape arising from the COVID-19 pandemic and evolving developments in the marketplace, the Group will need to re-evaluate its Headline KPI and will provide an update once the impact can be ascertained.

Posted by RainT > 2020-05-21 14:24 | Report Abuse

with current crisis,MAYBANK still can make grow profit is good

Posted by RainT > 2020-05-21 14:24 | Report Abuse

good quarter result out today

Posted by germaice > 2020-05-21 15:39 | Report Abuse

In covid worst sector demand drop like commodities crude oil,oil palm,property,banking loan and tourism

Posted by germaice > 2020-05-21 15:39 | Report Abuse

New normal this sector healthcare,Internet based e-commerce , API mobile marketplace ,delivery services and video conference beneficiary from covid19

Posted by stockist888 > 2020-05-21 16:19 | Report Abuse

how come mbb price not moving since good NP exceeded rm2B last quarter ?