Among the Malaysian companies, according to the list, were Malayan Banking Bhd (ranked 390th), Tenaga Nasional Bhd (490), Public Bank Bhd (632), CIMB Group Holdings Bhd (671)
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.
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