Cost income ratio met its KPI target of around 53.0%.“It was close to our assumption of 51.0% for FY16,” said the research house.AmInvestment Research said that gross loan growth decelerated to 2.0% (on-year). Additional provisions of RM120mil were taken on legacy steel loans and a furtherRM60mil provisions on oil & gas sector loans.“For 12MFY16, credit cost (excluding impairment on Swiber's bonds) was 0.39%, higher than 12MFY15 of 0.23%. However, it remained within our assumption of 0.50% for FY16.“GIL ratio rose to 2.43% in 4QFY16 from 2.25% in 3QFY16. This was due to higher impaired loans, contributed by rise in impaired loans for working capital, construction and purchase of securities.“A final dividend of 7 sen/share has been proposed, bringing total dividends to 12 sen/share for FY16 (payout of 29.0%), slightly lower than our estimate of 13 sen/share. We tweaked our net profit estimate for FY17/18 by - NOII and credit cost,” said the research house.

Source: The Star February 27, 2017 01:40 UTC