Except for AMMB which continued to have a write-back in provisions for impairments of its retail loans, 4Q16 saw banks with lower GIL ratios reported upticks in the ratios from rise in impairment of domestic retail loans (Hong Leong, Public Bank and AFG).
Meanwhile, the larger banks’ (Maybank, CIMB and RHB) GIL ratios were elevated, largely due to impairments of corporate loans.
“Calendarised sector core earnings growth for 2017 trimmed to 6.4% from 6.8%. This is after adjusting our estimates for operating income and credit cost assumptions,” it said.
JAWS ratio, according to Wikipedia is a measure used in finance to demonstrate the extent to which a trading entity's income growth rate exceeds its expenses growth rate, measured as a percentage.
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