Moody’s: Oil and gas loans less than 4% of 6 Malaysian banks’ total loans


Dateline 2017-03-03, The Star:

Oil and gas loans made up less than 4% of Malaysian’s six largest banks’ total loan portfolios at end-2016, says Moody’s Investors Service.

The international rating agency said on Friday  that by contrast, the asset quality of the banks’ Malaysian operations remained robust in 2016.

“While a few banks experienced marginal rises in loan impairments from borrowers in the commodities sector, signs of broad asset quality deterioration across the corporate and household sector were absent,” it said.

Moody’s also pointed that the full year 2016 results of the six largest Moody’s-rated Malaysian banks by total assets show continued asset quality deterioration from their overseas loan portfolios, weaker profitability from slower revenue growth, as well as higher credit costs.

The banks assessed in Moody’s report are: Malayan Banking Bhd (A3/A3 stable, a3); CIMB Group Holdings Bhd (Baa1 stable); Public Bank Bhd (A3/A3 stable, a3); RHB Bank Bhd (A3/A3 stable, baa3); Hong Leong Bank Bhd (HLB, A3/A3 stable, baa1); and AmBank (M) Bhd (Baa1 stable, baa3).

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