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Nikkei Markets

MARKET BUZZ: CIMB Cuts Malaysian Banks To Neutral On New Reporting Standards

By Chong Sin Hao
Nikkei Markets
KUALA LUMPUR (Jul 11) -- CIMB Investment Bank downgrades Malaysian banks to Neutral from Overweight on negative impact of the adoption of MFRS 9 - new reporting standards in 2018, slower profit growth and less attractive valuations. MFRS 9 will change provisioning methodologies from incurred loss to expected loss, leading to higher credit costs for banks, says house in investor note. "If we factor in the negative impact of 1.3%-8.3% from the adoption of MFRS 9, net profit growth would be reduced to 0.4%-6.4% in 2018, based on our calculations," house adds. Bursa Malaysia Finance index now down 0.4% at 16,690.62.
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
- Edited by Lopamudra Bhattacharya
- Send Feedback to feedback@NikkeiNewsRise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

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