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Malaysian economy overview from the banks’ results

Investment

Malaysian economy overview from the banks’ results

For those who bought some banking stocks last year when the stock prices were battered by negative sentiments because you have confidence that it’s just a matter of time before the banks’ profit numbers start to normalize, congratulations. You are right. This is especially important for the ones who were looking for dividend yields.

We start to see the good and positive signs already from all the recent announcements from the banks. As for how soon would it be even higher than financial year 2019, perhaps 2022 may just be the year. The moratorium is over. Thus, people would have to start paying or the banks will have to take action to recover what is owed to them.

Article in themalaysianreserve.com

Malayan Banking Bhd (Maybank) registered a 33.8% rise in net profit in the 4Q21 to RM2.05 billion from RM1.53 billion attributable to the increase in its net interest income and Islamic banking income which rose RM566.5 million or 12.7% to RM5.02 billion. 

CIMB Group Holdings Bhd saw its net profit for the 4Q21 jump close to four times to RM854.51 million from RM214.98 million a year ago, underpinned by significantly lower provisions. Revenue for the quarter fell 1.68% to RM4.59 billion from RM4.67 billion a year ago. 

Public Bank Bhd, the country’s third-largest lender, posted a 20.3% increase in net profit to RM1.38 billion for the 4Q21 from RM1.15 billion a year ago, mainly due to lower loan impairment allowance of RM274.3 million and higher net interest income of RM149.9 million. 

Hong Leong Bank Bhd’s net profit for 2Q22 rose to RM738.59 million, which was 10.11% higher YoY on 2.1% lower revenue of RM1.37 billion. 

RHB Bank Bhd’s net profit for the 4Q21, rose 43.9% YoY to RM631.17 million due to lower expected credit losses. Revenue for the quarter slipped 6.1% YoY to RM2.89 billion. 

AMMB Holdings Bhd reported a nearly 53% jump in net profit for the 3Q22 to RM403.29 million against RM263.83 million in the previous corresponding quarter despite higher loan provision caused by exposure to the local oil and gas industry. 

Meanwhile, Affin Bank Bhd achieved a net profit of RM206.85 million for 4Q21, from a net loss of RM9.36 million a year ago due to improved Islamic banking income, lower operating expenses and allowance for impairment losses. 

Alliance Bank Malaysia Bhd’s net profit increased by 50.3% to RM151.02 million in 3Q21 from RM100.46 million in 3Q20, mainly due to higher interest income and lower credit cost. Revenue also rose to RM480.18 million from RM475.7 million previously. Please do read the full article here with more good comments and views. Article in themalaysianreserve.com

Malaysian economy overview from the banks’ results

Banks lend. Businesses and people borrow. When everyone is feeling more confident, they will borrow more so that they could invest the funds into a business or even a property. Of course when times are good, people also borrow a lot to buy their dream car.

To buy a lot of things using the buy now pay later mode. Basically they believe that with better times, they would soon have a lot more money to pay for things they have bought. Businesses meanwhile believe that this is the best time to invest and to expand. They want to capture higher sales revenues and eventually higher profits too.

This is why if we like to know if the economy is growing or not, banks’ results would provide that overview.

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Next suggested article: Bad Debts within ASEAN banks 

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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