Present price is lower than EPF and Chua Ma Yu's average cost. Sure can go up, slowly or fast no one can predict. When transformed into Islamic Bank it would be re-rated.
UPDATING ON MBSB LOAN IMPAIRMENT PROGRAMME ---------------------------------------------------------------------------------- HOW WILL THIS RISING TRENDS IN PERSONAL LOAN DELINQUENCIES AFFECT MBSB? DO IT NEED TO INCREASE ITS PROVISIONINGS FOR ITS IMPAIRMENT AMOUNT FROM RM1.4B OVER 2 YEARS ? OR HAVE TO EXTEND IT TO BEYOND 2017?
Rising stress in personal loan space Author: Tan KW | Publish date: Sat, 5 Nov 2016, 05:35 PM ________________________________________ By Surin Murugiah / theedgemarkets.com | November 5, 2016 : 9:46 AM MYT
KUALA LUMPUR (Nov 5): Personal loans in the banking system have seen steady growth despite the weaker economy, according to the Edge weekly. In its latest edition, the magazine however said there are increasing signs of stress bubbling in that space that bear watching. It is the only loan segment within the household sector where gross impaired loans (GIL), in absolute terms, are continuing to grow at a rapid double-digit annual pace this year. The Edge’s Adeline Paul Raj wrote that it is also the segment with the highest GIL ratio in the household sector. The weekly reported that as at September this year, GIL in the personal loan segment grew 31.7% year on year to RM1.37 billion, according to Bank Negara Malaysia’s latest monthly statistics on the banking system. The growth pace was much faster than that in the credit card (5% to RM496.3 million) and mortgage (2.9% to RM5.31 billion) segments. On a year-to-date basis, GIL growth in the personal loan segment stood at 15.1%, compared with 3.4% in credit cards and 5.6% in mortgages, it said. The magazine cited a banking analyst as pointing out that as far back as August 2010, only 3.2% of the banking system’s total non-performing loans came from the personal loan segment, but the proportion has since grown to 5.6% as at September this year. The Edge said the GIL ratio for personal loans, while still relatively low, has crept up over the year from 1.87% as at December 2015. It deteriorated to 2.1% as at September, higher than the overall banking system’s GIL ratio of 1.6%. It was also the third highest GIL ratio of all loan segments after construction (7.21%) and working capital (2.5%). Bankers who The Edge spoke to say they are closely monitoring the asset quality situation, but are also quick to point out that personal loans account for only a small portion of overall banking loans. Indeed, to put things in perspective, Bank Negara’s data shows that as at September, personal loans accounted for just 4.4% or RM65.34 billion of total loans outstanding in the banking system. And, they accounted for about 9% of outstanding household loans. For details on the direction of personal loans in the country and the stress from it, read the Edge for the week of Nov 7 – Nov 13 available at newsstands now.
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last quarter before result announce, mbsb raise. next coming week, mbsb will announce quarter result again. i think it will move up or down... let see...
UPDATING ON MBSB LOAN IMPAIRMENT PROGRAMME ============================================== SINCE WE ARE NOW DISCUSSING ON MBSB’S COMING 3Q RESULTS, IT MAY BE TIMELY TO EXCHANGE VIEWS AND ANALYSIS ON THE ATTACHED REPORT WHICH I HAD JUST CAME ACROSS :-
HOW WILL THIS RISING TRENDS IN PERSONAL LOAN DEFAULTS & DELIQUINCIES AFFECT MBSB? DOES IT NEED TO INCREASE ITS PROVISIONINGS FOR ITS IMPAIRMENT AMOUNT FROM RM1.4B ? OR DOES IT HAVE TO EXTEND ITS IMPAIRMENT PERIOD TO BEYOND 2017?
My own personal observations:- 1 : Malaysian household indebtedness at 89% of GDP is among the highest in Asia. In a slowing economy many borrowers will find it increasingly hard to service their loans. Aggravated by increasing inflation (rising cost of living like GST, withdrawals of subsidies for essentials like electricity, petrol, tolls, public transports, cooking oils, etc) compounded by falling Ringgit value where all imported goods & services and overseas expenses like foreign university fees are all becoming more costly. 2 : Slowing, softer property markets, especially in the apartments & condos sectors also directly affected the borrowers’ ability to service their loans. More n more borrowers with multiple properties are finding it difficult to sell or rent out their apartments. Rentals had also dropped by 30%. Hence unrented or rented at 30% less are causing the rising stress and defaults among borrowers especially in the personal loans and housing loans sectors. (Attached article appeared in www.theedgemarkets.com on 7/11/2016. Unable to copy & paste the financial figure given on “market share of top players in personal loan/financing” and on “GIL or gross impairments loans”. (plse refer to http://www.theedgemarkets.com/en/article/rising-stress-personal-loan-space
Rising stress in personal loan space Author: Tan KW | Publish date: Sat, 5 Nov 2016, 05:35 PM ________________________________________ By Surin Murugiah / theedgemarkets.com | November 5, 2016 : 9:46 AM MYT
KUALA LUMPUR (Nov 5): Personal loans in the banking system have seen steady growth despite the weaker economy, according to the Edge weekly. In its latest edition, the magazine however said there are increasing signs of stress bubbling in that space that bear watching. It is the only loan segment within the household sector where gross impaired loans (GIL), in absolute terms, are continuing to grow at a rapid double-digit annual pace this year. The Edge’s Adeline Paul Raj wrote that it is also the segment with the highest GIL ratio in the household sector. The weekly reported that as at September this year, GIL in the personal loan segment grew 31.7% year on year to RM1.37 billion, according to Bank Negara Malaysia’s latest monthly statistics on the banking system. The growth pace was much faster than that in the credit card (5% to RM496.3 million) and mortgage (2.9% to RM5.31 billion) segments. On a year-to-date basis, GIL growth in the personal loan segment stood at 15.1%, compared with 3.4% in credit cards and 5.6% in mortgages, it said. The magazine cited a banking analyst as pointing out that as far back as August 2010, only 3.2% of the banking system’s total non-performing loans came from the personal loan segment, but the proportion has since grown to 5.6% as at September this year. The Edge said the GIL ratio for personal loans, while still relatively low, has crept up over the year from 1.87% as at December 2015. It deteriorated to 2.1% as at September, higher than the overall banking system’s GIL ratio of 1.6%. It was also the third highest GIL ratio of all loan segments after construction (7.21%) and working capital (2.5%). Bankers who The Edge spoke to say they are closely monitoring the asset quality situation, but are also quick to point out that personal loans account for only a small portion of overall banking loans. Indeed, to put things in perspective, Bank Negara’s data shows that as at September, personal loans accounted for just 4.4% or RM65.34 billion of total loans outstanding in the banking system. And, they accounted for about 9% of outstanding household loans. For details on the direction of personal loans in the country and the stress from it, read the Edge for the week of Nov 7 – Nov 13 available at newsstands now.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
musangfoxking
3,638 posts
Posted by musangfoxking > 2016-10-26 10:51 | Report Abuse
hahaha!!! here jackpot!!! in Genting also jackpot with ahmoi!!!! kikikikikiki