AllianceDBS cautious on outlook

PT Bank Maybank Indonesia Tbk

PETALING JAYA: The outlook for Malayan Banking Bhd’s (Maybank) and CIMB Group Holdings Bhd’s Indonesian operations could still be hazy this year, impacted by asset quality issues, despite the banking arms’ healthy results for the financial year ended Dec 31, 2016 (FY16).

AllianceDBS Research remained cautious on PT Bank CIMB Niaga Tbk and PT Maybank Indonesia, stating that apart from unresolved asset quality issues in Indonesia, it believes pressure on net interest margins (NIM) may possibily dent topline growth.