KUALA LUMPUR: Moody's Investors Service said the increase in loan under repayment assistance (RA) is credit negative for Malaysian banks because a greater proportion of loans risk becoming delinquent when the facility ends on June 30, especially if economic growth remains subdued.
It said as of Feb 26, the five largest Malaysian banks had reported results for 2020, with Maybank Banking Bhd (A3 stable, a32), Public Bank Bhd (A3 stable, a3), RHB Bank (A3 stable, baa2), and CIMB Group (Baa1 stable), each reporting an increase in loans with reduced or deferred instalments, that is loans benefitting from pandemic-related RA.
The proportion of loans under RA for these banks increased to 13 per cent on average in February from 11 per cent in November 2020. Hong Leong Bank's (A3 stable, a3) loans under RA declined to 7.0 per cent in January from 8.0 per cent in November 2020.
"The increase in retail loans under RA is consistent with increased unemployment and underemployment reducing borrowers' incomes. The increase is being driven by take-up among retail borrowers and vulnerable population segments, including the so-called B40, households whose incomes are at the bottom 40 per cent of the population," it said in its latest sectoral comment.
Although the Ministry of Finance projects that unemployment will fall to 3.5 per cent in 2021 from 4.8 per cent at year-end 2020, it will still be higher than the pre-pandemic 3.2 per cent at year-end 2019. In addition to a higher unemployment rate, the time-related underemployment rate also rose to 2.4 per cent at year-end 2020 from 1.1 per cent a year earlier because of shorter operating hours and job rotation among workers.
The rating agency said its forecast Malaysia's real gross domestic product (GDP) growth will rebound to around 6.0 per cent in 2021 and remain high over 2022-23, after 2020 GDP contracted 5.6 per cent as pandemic lockdowns disrupted businesses and slowed the job market. However, a new lockdown in January exacerbates the risk to asset quality and economic growth in 2021.
"RA supports borrowers whose repayment capacity is affected by pandemic-related disruptions to their incomes. Banks tailor RA to a borrower's needs. B40 households and micro-enterprises can defer monthly repayments for three months or reduce repayments by 50 per cent for six months under the government's Targeted Repayment Assistance scheme announced in November 2020."
Nonperforming loan formation has slowed for most banks because loans under RA are not classified as impaired.
As of year-end 2020, gross impaired loan ratios fell across the five banks compared with a year earlier, with the exception of CIMB Group, whose exposure to the oil and gas sector contributed to a deterioration in its asset quality, it said.
"We expect asset quality to deteriorate as support measures to borrowers gradually expire. The extent of the migration to nonperforming loans will depend on the pace of the economic recovery in the second half of this year."
Nonetheless, Malaysian banks still have strong capitalisation and loan-loss coverage ratios to buffer losses.
On average, the five banks' Common Equity Tier 1 capital ratio was stable at around 14.4 per cent at year-end 2020 compared with 14.3 per cent a year earlier, while the average loan-loss coverage ratio improved to 148 per cent from 94 per cent as a result of efforts to front-load provisions.
"The banks' proactive provisioning will prevent a surge in credit costs if, as we expect, asset quality deteriorates this year," it added.
-- BERNAMA
Bernama
Thu Mar 04 2021
![Loan repayment assistance poses risks to Malaysian banks' asset quality, strong capitalisation a respite - Moody's Loan repayment assistance poses risks to Malaysian banks' asset quality, strong capitalisation a respite - Moody's](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2017-06/51496824240_MaybankbuildingMa.jpg)
Malaysian banks still have strong capitalisation and loan-loss coverage ratios to buffer losses. REUTERSpic
![Kim Pan-gon akan ke Ulsan Hyundai? Kim Pan-gon akan ke Ulsan Hyundai?](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721117483_KimPangon.jpg)
Kim Pan-gon akan ke Ulsan Hyundai?
Bekas pengendali skuad negara itu dilaporkan sedang menjadi calon utama untuk mengisi jawatan pengurus kelab gergasi Korea Selatan, Ulsan Hyundai.
![Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2016-12/41482504881_TamanTasikTitiwang.jpg)
Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau
Daripada keluasan itu, sebanyak 977.55 hektar tanah telah diwartakan, manakala 1,416.24 hektar tanah lapang yang berpotensi akan dan sedang dalam proses diwartakan.
Guna jawatan untuk projek pembekalan, suami isteri ditahan
Sepasang suami isteri direman enam hari dalam siasatan penyalahgunaan jawatan untuk mendapatkan projek pembekalan bernilai lebih RM200,000.
Perintah reman dikeluarkan Majistret Noor Mazrinie Mahmood bermula hari ini hingga Ahad.
Perintah reman dikeluarkan Majistret Noor Mazrinie Mahmood bermula hari ini hingga Ahad.
DBKL ubah lalu lintas Jalan Sultan Ismail bermula 22 Julai
Dewan Bandaraya Kuala Lumpur (DBKL) akan melaksanakan perubahan lalu lintas di Jalan Sultan Ismail berkuat kuasa 22 Julai ini.
![ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61721116604_ChongZheminDewan.jpg)
ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar
Tindakan tersebut seolah-olah satu penghinaan paling besar kepada Parlimen yang telah meluluskan pindaan Perlembagaan Persekutuan berkait Akta Antilompat Parti.
[TERKINI] Perbelanjaan pengguna Malaysia dijangka kembali teguh
Perbelanjaan pengguna Malaysia dijangka teguh sepanjang tahun ini, demikian menurut BMI, iaitu syarikat Fitch Solitions.
![Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81721102947_suspekbunuhNurFar.jpg)
Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM
Anggota berusia 26 tahun terbabit bertugas di Balai Polis Slim River di bawah Ibu Pejabat Polis Daerah (IPD) Muallim dengan pangkat lans koperal.
![Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721117052_SaifulNizamSaharud.jpg)
Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta
Seorang perunding pelaburan mengaku tidak bersalah atas empat pertuduhan pengubahan wang haram berjumlah hampir RM1 juta.
Purata suhu meningkat 0.24 darjah celcius per dekad
Berdasarkan rekod dari tahun 1969 hingga 2019, purata suhu bulanan di Semenanjung Malaysia pada bulan Mei 2024 adalah 28.8 darjah celcius manakala purata suhu bulanan pada bulan Mei 1974 iaitu 50 tahun yang lalu adalah 26.6 darjah celcius.
ADUN dari kerajaan perpaduan sertai Pas
Menurut Takiyuddin, keahlian Muhamad Jailani yang juga wakil rakyat UMNO diterima pada 10 Jun tahun lalu, namun diumumkan secara rasmi hari ini.
![Bursa Malaysia rendah dalam dagangan awal Bursa Malaysia rendah dalam dagangan awal](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/51705634447_TBBursaMalaysia.jpg)
Bursa Malaysia rendah dalam dagangan awal
Pada 9.16 pagi, FTSE Bursa Malaysia KLCI (FBM KLCI) merosot 5.57 kepada 1,584.80 daripada 1,590.37 pada Jumaat lepas.
![Maybank teraju syarikat Malaysia dalam senarai Fortune 500 Asia Tenggara Maybank teraju syarikat Malaysia dalam senarai Fortune 500 Asia Tenggara](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/51718697688_Maybank.jpg)
Maybank teraju syarikat Malaysia dalam senarai Fortune 500 Asia Tenggara
Malayan Banking Bhd menduduki tempat ke-17 dengan pendapatan sebanyak US$14.15 bilion sekali gus menerajui syarikat-syarikat Malaysia dalam senarai Fortune 500 Asia Tenggara untuk 2024.
![Untung bersih suku pertama Maybank melonjak kepada RM2.49 bilion Untung bersih suku pertama Maybank melonjak kepada RM2.49 bilion](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-08/41691402921_Maybank.jpg)
Untung bersih suku pertama Maybank melonjak kepada RM2.49 bilion
Dalam makluman kepada Bursa Malaysia hari ini bank itu berkata hasil meningkat kepada RM18.35 bilion daripada RM15.19 bilion sebelum itu.
![Kini anda boleh tambah kad Maybank pada Google Wallet Kini anda boleh tambah kad Maybank pada Google Wallet](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41715140606_KadMaybankjpg.jpg)
Kini anda boleh tambah kad Maybank pada Google Wallet
Maybank dilihat menyokong kad Visa dan Mastercard kedua-dua debit dan kredit untuk ditambah pada Google Pay.
![Bursa Malaysia dibuka tinggi Bursa Malaysia dibuka tinggi](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/51709865166_BURSAMALAYSIA.jpg)
Bursa Malaysia dibuka tinggi
Pada 9.15 pagi, FTSE Bursa Malaysia KLCI (FBM KLCI) naik 2.41 mata kepada 1,542.27 daripada 1,539.86 pada Jumaat lepas.
![Maybank umum beberapa perkhidmatan akan tergendala pada 9 Mac 2024 Maybank umum beberapa perkhidmatan akan tergendala pada 9 Mac 2024](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/51704603925_TBMAYBANK.jpg)
Maybank umum beberapa perkhidmatan akan tergendala pada 9 Mac 2024
Justeru itu, orang ramai dinasihatkan untuk melakukan pelbagai urusan perbankan sebelum gangguan berlaku. Pada masa sama pihak Maybank memohon maaf di atas sebarang kesulitan d
![Keuntungan bersih Maybank meningkat 17.5 peratus kepada RM9.35 bilion pada tahun kewangan 2023 Keuntungan bersih Maybank meningkat 17.5 peratus kepada RM9.35 bilion pada tahun kewangan 2023](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-08/41691402921_Maybank.jpg)
Keuntungan bersih Maybank meningkat 17.5 peratus kepada RM9.35 bilion pada tahun kewangan 2023
Maybank mencatatkan keuntungan bersih tinggi sebanyak RM9.35 bilion, peningkatan 17.5 peratus, bagi tahun kewangan berakhir 31 Dis, 2023.
![Maybank sasar agih kira-kira RM18 bilion untuk pembiayaan PKS tahun ini Maybank sasar agih kira-kira RM18 bilion untuk pembiayaan PKS tahun ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-08/41691402921_Maybank.jpg)
Maybank sasar agih kira-kira RM18 bilion untuk pembiayaan PKS tahun ini
Chong berkata, Maybank menggerakkan hampir RM17 bilion dalam pembiayaan PKS tahun lepas.
![Bursa Malaysia dibuka rendah susulan prestasi suram Wall Street Bursa Malaysia dibuka rendah susulan prestasi suram Wall Street](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/51705634447_TBBursaMalaysia.jpg)
Bursa Malaysia dibuka rendah susulan prestasi suram Wall Street
Pada 9.05 pagi, FTSE Bursa Malaysia KLCI (FBM KLCI) susut 3.46 mata kepada 1,527.91 daripada paras penutup Selasa 1,531.37.
![Maybank umum beberapa perkhidmatan akan tergendala pada 14 Januari Maybank umum beberapa perkhidmatan akan tergendala pada 14 Januari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/51704603925_TBMAYBANK.jpg)
Maybank umum beberapa perkhidmatan akan tergendala pada 14 Januari
Perkhidmatan seperti laman Maybank2u (web & aplikasi), aplikasi MAE dan Maybank2u Biz tidak boleh diakses sementara di antara jam 3 hingga 6 pagi.