ID :
156235
Fri, 01/07/2011 - 10:05
Auther :
Shortlink :
https://oananews.org//node/156235
The shortlink copeid
NOMURA SEES A STRONG YEAR FOR CONSUMER & CAPITAL MARKETS IN MALAYSIA
KUALA LUMPUR, Jan 6 (Bernama) -- Equity research firm, Nomura expects loan
growth of 10 per cent in the Malaysian banking sector for this year.
The projection is based on a constant RM7 billion increase in loans per month of
RM4.5 billion from consumers and RM2.5 billion from businesses, the firm said in
its Asean Equity Strategy Outlook Report for 2011. (US$1=RM3.07)
Its bottom-up growth forecast was 11 per cent based on the bullish Malaysian
consumer market, given the fast growing and young population with rising income.
"We anticipate another strong year for the consumer business," the equity
research firm said.
It also projected the sector's earnings growth this year to hit 18 per cent on
the back of 13 per cent growth in preprovision earnings.
Credit losses will remain benign, it said.
At current levels, the average household is in good shape as debt service ratio
is at 25 per cent average household income, while household savings in the form
of financial assets are huge and outnumber household liabilities by 2.5 times to
one, it said.
"Asset quality will remain robust as the economy is still expected to remain at
full employment levels," Nomura said.
Competition in the sector would stay intense especially mortgages and auto
lending but a 50 basis points increase in overnight policy rate (OPR) is
expected to support overall net interest margins NIMs.
The equity research firm believed 2010 was a very strong year for Malaysian banks.
It said they had bounced back admirably from the 2009 recession and were
expected to record 39 per cent net earnings growth.
Meanwhile, the equity research firm expected bright prospects for the domestic
capital markets in 2011.
"Strong market liquidity and tighter corporate spreads should lead to a healthy
pipeline for bond issuance," Nomura said.
It said bankers were guiding for a strong merger and acquisition deal pipeline
with several high-profile deals already announced recently.
"Our economics team’s expectations for a strengthening of the ringgit should
result in better foreign exchange (FX) flows, leading to improved FX income for
banks," the firm said.
-- BERNAMA
growth of 10 per cent in the Malaysian banking sector for this year.
The projection is based on a constant RM7 billion increase in loans per month of
RM4.5 billion from consumers and RM2.5 billion from businesses, the firm said in
its Asean Equity Strategy Outlook Report for 2011. (US$1=RM3.07)
Its bottom-up growth forecast was 11 per cent based on the bullish Malaysian
consumer market, given the fast growing and young population with rising income.
"We anticipate another strong year for the consumer business," the equity
research firm said.
It also projected the sector's earnings growth this year to hit 18 per cent on
the back of 13 per cent growth in preprovision earnings.
Credit losses will remain benign, it said.
At current levels, the average household is in good shape as debt service ratio
is at 25 per cent average household income, while household savings in the form
of financial assets are huge and outnumber household liabilities by 2.5 times to
one, it said.
"Asset quality will remain robust as the economy is still expected to remain at
full employment levels," Nomura said.
Competition in the sector would stay intense especially mortgages and auto
lending but a 50 basis points increase in overnight policy rate (OPR) is
expected to support overall net interest margins NIMs.
The equity research firm believed 2010 was a very strong year for Malaysian banks.
It said they had bounced back admirably from the 2009 recession and were
expected to record 39 per cent net earnings growth.
Meanwhile, the equity research firm expected bright prospects for the domestic
capital markets in 2011.
"Strong market liquidity and tighter corporate spreads should lead to a healthy
pipeline for bond issuance," Nomura said.
It said bankers were guiding for a strong merger and acquisition deal pipeline
with several high-profile deals already announced recently.
"Our economics team’s expectations for a strengthening of the ringgit should
result in better foreign exchange (FX) flows, leading to improved FX income for
banks," the firm said.
-- BERNAMA
