“We estimate that the expected 125bps cut in OPR in 2020 would lower Alliance’s FY21 net profit by 33.5%, versus an average of 10% for banks under our coverage, ” CGS-CIMB said.
PETALING JAYA: A higher proportion of floating-rate loans compared to other local lenders, and a low proportion of fixed deposits (FDs) over its total deposits will make Alliance Bank Bhd Malaysia one of the most vulnerable to more overnight policy rate (OPR) cuts.
CGS-CIMB in a report to clients said Alliance’s floating-rate loan ratio is estimated to be at 82% in financial year 2021 (FY21) versus the sector’s average of 76.5%.
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