Wednesday, November 1, 2017

FW: AmBank Research - Banking Sector : Slower pace of loans to the business sector OVERWEIGHT, 1 Nov 2017

 

 

SECTOR FOCUS OF THE DAY       

Banking Sector : Slower pace of loans to the business sector       OVERWEIGHT

 

- Industry loan growth moderated to 5.2%YoY in Sept 2017 contributed by a slowdown in non-household loans while growth in household loans continued to be stable.

 

- Growth in loan applications moderated but stayed positive with lower levels of loan demand from households and non-households.

 

- Moderation in industry deposit growth with a stronger momentum in business enterprises’ deposits offset by a weaker growth in individual deposits.

 

- Weighted base rate and average lending rate holding up in Sept 2017.

 

- Industry GIL ratio remained at 1.7% with the absolute level of impaired loans rising by only a marginal 0.2%MoM.

 

- Capital market activities continued to be active with higher issuance of bonds in Sept 2017.

 

- Healthy capital ratios.

 

- Maintain OVERWEIGHT with BUYs on RHB Bank and Public Bank.

 

 

Others :

MMHE : 3QFY17 rebound from lumpy change orders                                      HOLD

Sasbadi Hldgs : Leaning on thin bookends                                                             HOLD

 

 

QUICK TAKE

CIMB Group : Stronger contribution from NOII in 3QFY17                              HOLD

 

STOCKS ON RADAR

Samchem Hldgs, Systech, JAKS Resources, Hengyuan Refining

                               

 

ECONOMIC HIGHLIGHTS

Malaysia : Cost of doing business fairly contained

Japan : BoJ not in a hurry to change its monetary policy

 

 

NEWS HIGHLIGHTS

Iskandar Waterfront : Lim Kang Hoo proposes Ekovest-IWCity merger; IWH-IWCity merger off

Felda Global : Former M’sian Rubber Board D-G Salmiah joins FGV board

Cuscapi Bhd : Fund-raising plan hits a snag

CI Holdings Bhd : New plant expected to be fully operational by March 2018

 

 

 

DISCLAIMER:

The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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