PETALING JAYA: Following the recent rally in banking stocks on strong earnings performance, analysts have now turned cautious on the sector, citing earnings risks due to the new, stricter accounting standard, MFRS 9.
The new standard, which comes into effect January 2018, will result in banks having to make additional provisioning for their existing loan portfolios, leading to higher credit costs and ultimately, affecting net profit.
Already a subscriber? Log in.
Limited time offer:
Just RM5 per month.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!