COVID–19 NEWS   S Korea’s new COVID-19 cases bounce back to over 10,000 amid resurgence woes | Italy's COVID-19 transmission rate rises for 4th consecutive week | N Korea's first COVID-19 cases traced to area bordering S Korea: State media | COVID: Rise in new infections, drop in death cases last week - Health DG | South Korea’s COVID-19 vaccine candidate inches closer to launch after experts' approval Recommendation | 
BUSINESS

Malaysia's Islamic Banking gross NPL ratio to rise 100 bps once moratorium period ends - S&P

25/05/2022 04:30 PM

KUALA LUMPUR, May 25 (Bernama) -- Malaysia’s Islamic banking sector could experience an increase of 100 basis points in non-performing loan (NPL) ratio in the next 12 to 24 months from 1.3 per cent as of February 2022.

This will be following the expiry of various moratorium and relief programmes in mid-2022, said S&P Global Ratings associate director, South & Southeast Asia, Nikita Anand.

“As far as profitability is concerned, the banks have been building provisions because they have had time to kind of smooth out the effect of these potential impact.

“We believe that earnings should be able to absorb these credit costs. In fact, we have forecast a higher or elevated credit costs for the banking system this year as well,” she said during S&P Global Ratings’ Southeast Asia Islamic Banking Outlook webinar.

As for Indonesia, Nikita said the country is expected to see NPL ratio hikes of 100-150 basis points by the end of 2023, coupled with elevated credit costs.

She said regulatory forbearance allowing restructured loans to be classified as performing is set to     expire in March 2023.

-- BERNAMA 

 

 


Bernama is the trusted source of reliable real-time comprehensive and accurate news for both the public and media practitioners. Our news is published at www.bernama.com ; BERNAMA TV on: Astro Channel 502, unifi TV Channel 631, MYTV Channel 121 IFLIX; and Bernama Radio broadcasting locally on FM93.9 in Klang Valley, Johor (FM107.5), Kota Kinabalu (FM107.9) and Kuching (FM100.9).

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy