Hyflux has limited impact on Maybank, worries subside

Fitch Ratings said Maybank's long-term IDRs and viability rating (VR) reflected its dominant franchise in Malaysia and able management team, which help to underpin its stable funding and liquidity position, sound capital buffers and steady earnings performance through business cycles.

PETALING JAYA: Concerns about Malayan Banking Bhd’s (Maybank) exposure to Hyflux Ltd have eased after provisions made for the financially troubled water treatment company in Singapore proved to have had limited impact on the lender.

Despite setting aside a substantial amount of RM315.1mil as impairment for its exposure to Hyflux, Maybank’s total allowance for loan impairment was still lower by 20.4% year-on-year (y-o-y) in the first half ended June 30, 2018.