Islamic banks driving Malaysian banking sector growth — RAM TheEdge Tue, Mar 27, 2018 - 1 hour ago
KUALA LUMPUR (March 27): Islamic financing, which recorded a healthy 10.3% growth in 2017 and was substantially ahead of conventional banks’ 1.7% growth during the same period, now account for 71% of increase in the banking system's financing in 2017, according to RAM Rating Services Bhd.
“Our analysis shows that Islamic financing has overtaken conventional loans as the growth driver for the domestic banking system in recent years. Islamic financing accounted for 71% of the increase in the banking system’s financing in 2017, as several major players’ Islamic First strategy gained further traction,” said RAM's co-head of financial institution ratings, Wong Yin Ching, in a statement today.
RAM expects the strong growth momentum for Islamic financing to continue in 2018 — with expansion coming in at the mid- to high teens, premised on improving consumer sentiment and steady business optimism.
“Our growth target also factors in Malaysia Building Society Bhd’s Islamic financing portfolio (through Asian Finance Bank Bhd), which will augment the Islamic banking system’s financing by some 7%,” RAM said.
Islamic banks’ asset quality has continued to be resilient, with a healthy gross impaired financing (GIF) ratio of 1.2% as at end-January 2018, and an annualised credit-cost ratio of 19 basis points (bps) in 2017, the statement added.
"Islamic banks’ GIF coverage had strengthened to 108% as at end-January 2018 (end-December 2017: 89%), due to the incremental impairment provisions arising from the implementation of MFRS 9 in 2018, as banks with December financial year-ends have already adopted this standard. The first-day capital impact was negligible; Islamic banks common equity tier-1 capital ratio remained unchanged m-o-m at a sturdy 12.5% as at end-January 2018," RAM noted.
Meanwhile, Islamic banks’ deposits expanded at a commendable 14.2% year-on-year (y-o-y) in 2017 (2016: +3.8%), largely due to stronger corporate earnings and a major player’s shift in priority to focus on deposit mobilisation, instead of investment accounts (IAs).
However, there will be some degree of margin compression going forward, as banks continue to compete for retail and SME deposits in the lead-up to the net stable funding ratio requirement. "This, coupled with our anticipation of an uptick in credit costs, underpins our softer earnings outlook for Islamic banks this year," said RAM’s co-head of financial institution ratings, Sophia Lee.
RAM also updated that Bank Negara Malaysia has, in its latest move to steer players towards sustainable intermediation, introduced the value-based intermediation (VBI) principles in a strategy paper released in July 2017 that was subsequently finalised in March 2018, to deliver the intended outcomes of shariah without compromising the financial returns to shareholders and their long-term interests.
“At present, nine Islamic banks have committed to adopting the VBI principles in their business strategies, with each bank determining its own timeline,” RAM added in its statement.
Relax lah...please lah....patience. Only can wait...thats all. No need to be so upset. The time will come...when the volume come...when the wave come...just quickly tangkap. Now no wave so relax. No need to waste energy. Smile and still a day. Cry is still a day. So smile.
Posted by polycarp > Mar 28, 2018 11:17 AM | Report Abuse
The fact is no matter how much you pump into the stock market it's never enough. No need pandai _______________________________________________________________________
Mishti mau pump masa tia ponttot lg kichit pinya yam lor. Pulakang mau tggu tia ponttot naik kumbang yati gumuk busat lor. Ini maciam mayin palu poleh ciakap pantay mayin pinya lor.
Yeah ...just sell sell sell...and let other people buy. Its a zero sum game. The volume is drying up...the sellers I mean. When you see the volume gets lesser and lesser means the downside is already too low...too oversold. Then suddenly if volume increase, that will be the trigger point to buy.
this news just to inform ikan bilis. so no effect to price at all kahkahkah...
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 856 views | 5 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
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....
kentwoon
1,841 posts
Posted by kentwoon > 2018-03-27 14:08 | Report Abuse
Oil tak ada, susu Ada mahu?