“The average credit cost ratio spiked up to 62 bps from 18 bps (or 25 bps after adjusting for a one-off item) in Q1,2019. One bank also incurred higher provisions due to a lumpy default in its Singaporean operations, ” said Wong Yin Ching (pic), RAM’s co-head of financial institution ratings
KUALA LUMPUR: Domestic banks set aside more provisions for loan impairments in the first-quarter ended March 31, as they brace for more delinquencies when the six-month moratorium ends on Sept 30, according to RAM Ratings.
In a statement, it said the banks’ financial results for the first quarter were underscored by heftier loan impairment charges, as they proactively increased their loss-absorption buffers amid the challenging landscape.
Already a subscriber? Log in.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
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!
