KUALA LUMPUR: CGS-CIMB Research has reiterated "overweight" call on Malaysia's banking sector, underpinned by the expected decline in loan loss provisioning (LLP) and turnaround in net interest income growth in 2021.
The research house said the industry's loan growth picked up from 3.4 per cent year-on-year (yoy) at end-December 2020 (Dec-2020) to 3.8 per cent yoy at end-January 2021 (Jan-2021), the improvement primarily came from the business loan segment, which expanded by 1.5 per cent yoy.
"The growth in household loans inched down from 5.0 per cent yoy at end-Dec-2020 to 4.9 per cent yoy in January this year.
"However, we lower our projected loan growth for 2021 from 4.0 to 5.0 per cent previously to 2.0 to 3.0 per cent, in line with our downward revision of gross domestic product growth from 7.5 per cent previously to 5.0 per cent on Feb 9, 2021," it said in a research note on Wednesday.
CGS-CIMB feels that the Movement Control Order (MCO) 2.0 would have an indirect negative impact on banks' loan growth as it has disrupted some business activities and dampened business sentiment.
In addition, it said auto sales have also weakened in January this year, which would be detrimental for auto loan growth.
On another note, it said the trends in the leading loan indicators also weakened as the growth in loan applications moderated from 12.3 per cent yoy in Dec-2020 to 9.7 per cent yoy in January, while the contraction in loan approvals widened from 0.1 per cent yoy to 3.5 per cent yoy in the period under review.
"This does not bode well for banks' loan growth in the next one to two months," CGS-CIMB said.
The sector also saw the industry's gross impaired loan (GIL) ratio rose in Jan-2021, but the quantum of increase was manageable at only four basis points month-on-month from 1.56 per cent at end-Dec 2020 to 1.6 per cent at end-Jan 2021).
This was in line with our expectation of an uptrend in the GIL ratio. We estimate a GIL ratio of 2.0 at end-Dec 2021, it said.
"We reiterate sector 'overweight' as we expect banks' net profit in 2021 to be catalysed by a recovery in net interest income growth and a decline in LLP, which are the potential re-rating catalysts for the sector.
"Despite the cut in loan growth, we expected banks' net interest income to increase in 2021 due to wider net interest margin.
"Our top picks for the sector are Public Bank, Hong Leong Bank and RHB Bank," it added.
-- BERNAMA
Bernama
Wed Mar 03 2021
![CGS-CIMB reiterates 'overweight' call on banking sector, underpined by LLP decline CGS-CIMB reiterates 'overweight' call on banking sector, underpined by LLP decline](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-11/51605854640_KualaLumpurskyline.jpg)
CGS-CIMB feels that the MCO 2.0 would have an indirect negative impact on banks' loan growth as it has disrupted some business activities and dampened business sentiment. REUTERSpic
![Jenazah Siti Zaharah selamat dikebumikan di Shah Alam Jenazah Siti Zaharah selamat dikebumikan di Shah Alam](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81722039049_TanSriDrSitiZaha.jpg)
Jenazah Siti Zaharah selamat dikebumikan di Shah Alam
Jenazah bekas Menteri Perpaduan Negara dan Pembangunan Masyarakat Tan Sri Dr Siti Zaharah Sulaiman selamat dikebumikan di Tanah Perkuburan Islam, Seksyen 21, Shah Alam hari ini.
![Paris 2024: Guna dron intai latihan lawan, Kanada singkir ketua jurulatih wanita Paris 2024: Guna dron intai latihan lawan, Kanada singkir ketua jurulatih wanita](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41722053002_tbBevPriestman.jpg)
Paris 2024: Guna dron intai latihan lawan, Kanada singkir ketua jurulatih wanita
Ketua jurulatih pasukan kebangsaan wanita Kanada, Bev Priestman, disingkirkan daripada pasukan bola sepak Olimpik Paris negara itu kerana skandal yang melibatkan penggunaan dron untuk mengintip lawan.
![Jangan lakukan pembakaran terbuka semasa musim panas sekarang - Bomba Jangan lakukan pembakaran terbuka semasa musim panas sekarang - Bomba](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71716287876_cuacapanas.jpg)
Jangan lakukan pembakaran terbuka semasa musim panas sekarang - Bomba
JBPM Zon Sibu mengingatkan orang awam agar tidak melakukan pembakaran terbuka ketika cuaca panas dan kering yang melanda Sarawak sekarang.
Valor Fun Run tampil lorong berasingan buat wanita
Bagi meraikan amalan gaya hidup sihat, serta bahang Sukan Olimpik Paris 2024.
Sebuah acara larian The Valor Fun Run 2024 diadakan di Putrajaya pada Sabtu, bukan sahaja untuk mengalakkan aktiviti bersukan, tetapi mengalakkan inklusiviti melalui pengenalan lorong berasingan untuk keluarga dan peserta wanita
Sebuah acara larian The Valor Fun Run 2024 diadakan di Putrajaya pada Sabtu, bukan sahaja untuk mengalakkan aktiviti bersukan, tetapi mengalakkan inklusiviti melalui pengenalan lorong berasingan untuk keluarga dan peserta wanita
Tawaran dua tahun awal demi kebaikan jemaah musim seterusnya
Datuk Seri Syed Saleh Syed Abdul Rahman maklumkan, antara pembaharuan akan diperkenalkan Lembaga Tabung Haji, TH nanti termasuk mengeluarkan surat tawaran mengerjakan haji dua tahun lebih awal
Waspada penipuan pakej haji, elak langgar fatwa
Pada musim haji akan datang, rakyat Malaysia dinasihatkan tidak tertipu dengan kuota yang diberikan selain pengendali tunggal di Malaysia oleh tabung haji.
Ini kerana menurut Ketua Rombongan Haji 1445H/2024M, Datuk Seri Syed Saleh Syed Abdul Rahman, tindakan memasuki tanah haram tanpa visa haji yang sah jelas melanggar fatwa, dan ibadahnya tidak dibenarkan dalam agama.
Ini kerana menurut Ketua Rombongan Haji 1445H/2024M, Datuk Seri Syed Saleh Syed Abdul Rahman, tindakan memasuki tanah haram tanpa visa haji yang sah jelas melanggar fatwa, dan ibadahnya tidak dibenarkan dalam agama.
![Isu pendidikan, cabaran negara dibincang dengan Dewan Da'wah Islamiyah Indonesia - Fadhlina Isu pendidikan, cabaran negara dibincang dengan Dewan Da'wah Islamiyah Indonesia - Fadhlina](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61722055634_tbFadhlinaSidek.jpg)
Isu pendidikan, cabaran negara dibincang dengan Dewan Da'wah Islamiyah Indonesia - Fadhlina
Isu pendidikan dan cabaran membina negara khususnya mempertahankan nilai, moral dan agama dibincangkan antara KPM dan Dewan Da'wah Islamiyah Indonesia.
'UMNO perlu guna media sosial dekati pengundi PRU16'
Itu tegas Presidennya, Datuk Seri Dr Ahmad Zahid Hamidi yang berkata, langkah itu perlu kerana kaedah lama sudah tidak relevan dan gerak kerja jentera UMNO perlu mengikut kesesuaian serta keperluan semasa supaya lebih berkesan.
![Pemimpim rakam takziah atas pemergian bekas Menteri Siti Zaharah Sulaiman Pemimpim rakam takziah atas pemergian bekas Menteri Siti Zaharah Sulaiman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51722053039_tbSitiZaharahSulai.jpg)
Pemimpim rakam takziah atas pemergian bekas Menteri Siti Zaharah Sulaiman
Beberapa pemimpin kerajaan dan parti hari ini merakamkan ucapan takziah kepada seluruh ahli keluarga Tan Sri Dr Siti Zaharah Sulaiman.
Bekas Menteri, Tan Sri Dr Siti Zaharah Sulaiman meninggal dunia
Sebagaimana dimaklumkan Ahli Majlis Tertinggi UMNO yang juga Ketua UMNO Bahagian Maran Datuk Seri Shahaniza Samsuddin di Facebooknya, bekas Menteri Perpaduan Negara dan Pembangunan Masyarakat, Tan Sri Dr Siti Zaharah Sulaiman meninggal dunia pada jam 11.23 malam tadi.
![Model pembiayaan hibrid kini cabaran bagi pelaksanaan MRT3 Model pembiayaan hibrid kini cabaran bagi pelaksanaan MRT3](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-03/41646674106_ProjekTransitAlira.jpg)
Model pembiayaan hibrid kini cabaran bagi pelaksanaan MRT3
CGS-CIMB Securities Sdn Bhd berkata tumpuan sekarang beralih kepada pelaksanaan dan kejayaan model pembiayaan hibrid, memandangkan kekangan fiskal kerajaan.
![CGS-CIMB saran 'tambah' saham Astro, EPL dijangka kekal hubungan dengan Astro CGS-CIMB saran 'tambah' saham Astro, EPL dijangka kekal hubungan dengan Astro](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-06/51561521886_Astro.jpg)
CGS-CIMB saran 'tambah' saham Astro, EPL dijangka kekal hubungan dengan Astro
Menurut laporan kajian "Much Ado About Premflix" terbitan CGS-CIMB Securities, ini terutama selepas aktiviti cetak rompak kandungan yang melemahkan pertumbuhan pasaran penstriman di Malaysia.