MALAYAN BANKING BHD (MBBM.KL) remains committed to supporting borrowers

MALAYAN BANKING BHD (MBBM.KL) remains committed to supporting borrowers

MALAYAN BANKING BHD (MBBM.KL) remains committed to supporting borrowers

MALAYAN Banking Bhd (Maybank) is projected to disburse some RM85 billion worth of mortgages as well as loans to small and medium enterprises (SMEs) over the next three years.

Its group president and CEO Datuk Abdul Farid Alias said the banking industry remains committed to supporting borrowers, particularly those who require financing to purchase homes, which would in turn support the domestic economy.

“We plan to disburse about RM50 billion in housing loans over the next three years,” he told reporters after the group’s AGM in Kuala Lumpur yesterday.

According to Abdul Farid, the bank disbursed a total of RM12.2 billion in housing loans in 2018, while its approval rate for mortgages for eligible bachelors as at March 2019 stood at 80% against the entire industry approval rate of 70%.

He said the group’s mortgages segment — including residential and non-residential — comprised RM87.5 billion as at end-December 2018, while its total loan book including global operations amounted to around RM500 billion.

“We will also disburse about RM35 billion over the next three years on the SME side,” Abdul Farid said, adding that the group’s SME business comprises both retail SMEs and business or commercial banking.

Under its SME loans segment, the bank’s retail SME financing currently stands at around RM17.1 billion, while the business banking side constitutes RM24 billion.

As per the group’s financial results for the year ended Dec 31, 2018 (FY18), the lender’s gross loans climbed 4.8% yearon- year to RM517.3 billion.

Loans from its local operations rose 4.8%, while Singapore grew 4.5%, Indonesia climbed 7% and other international markets increased 10.9%.

On Bank Negara Malaysia’s (BNM) proposed additional capital requirement for domestic systemically important banks (D-SIBs), Abdul Farid said the element has already been factored into the group’s capital expectations.

BNM last week held a public consultation on its proposed framework, of which banks designated as D-SIBs will need to maintain an additional capital buffer of 0.5% to 1% of common equity Tier 1 (CET1) capital relative to risk-weighted assets on a consolidated group basis.

“What was issued, was already within our expectations,” Abdul Farid said, adding that the bank’s present capital buffers are already adequate.

Shayne Heffernan, CEO and Founder of Heffx had said the proposed additional capital requirement would be credit positive as it would increase Malaysia’s largest banks’ ability to absorb potential shocks and enhance banking system stability amid challenging operating conditions.

The firm also said the country’s six largest banks, which it viewed as likely to receive the D-SIB designation, would comfortably meet the higher capital requirement without needing to raise additional capital as these banks currently maintain capital buffers well above the new minimum regulatory capital levels.

The CET1 capital ratios of all six banks were more than 300 basis points above the 8% minimum CET1 ratio (including a 1% D-SIB capital buffer) as at end-2018.

Shares of Maybank closed two sen or 0.22% lower at RM9.26 yesterday, giving the country’s largest bank a market capitalisation of RM102.32 billion. The stock saw 9.16 million units traded.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 5.40.

The projected upper bound is: 5.22.

The projected lower bound is: 4.87.

The projected closing price is: 5.05.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 14 white candles and 32 black candles for a net of 18 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.5238. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 28.92. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 8 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -141.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

CIMB GRP BHD closed unchanged at 5.060. Volume was 64% below average (consolidating) and Bollinger Bands were 36% wider than normal.

Open High Low Close Volume___
5.070 5.080 5.060 5.060 3,507,200

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5.09 5.46 5.70
Volatility: 10 20 27
Volume: 6,400,560 10,672,526 10,524,346

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CIMB GRP BHD is currently 11.2% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of CIMB.KL (mildly bearish). Our trend forecasting oscillators are currently bearish on CIMB.KL and have had this outlook for the last 27 periods. Our momentum oscillator is currently indicating that CIMB.KL is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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