MONEY MASTER

Malayan Banking Bhd’s latest disclosure points to more than just deal volume,  it provides  early evidence that the Johor-Singapore Special Economic Zone (JS-SEZ) is beginning to attract meaningful capital flows , positioning the bank at the forefront of a multi-year regional growth theme. Early Signs of Capital Formation in JS-SEZ Malayan Banking Bhd  has facilitated  RM20 billion (US$4.9 billion) in financing and investments  tied to the JS-SEZ, spanning corporate, mid-market and consumer segments. More notably, the bank has supported the establishment of  nine family offices in Johor , signalling: Rising wealth inflows into the corridor Growing demand for  cross-border structuring and asset allocation Early-stage development of a  regional wealth management hub This suggests the SEZ is  moving beyond policy ambition into execution phase , where capital deployment is already taking shape. From Policy Framework to Investable Theme The JS-SEZ...

CIMB Group Holdings Bhd  reported a slight earnings dip in 1QFY2026, as margin pressure weighed on core income, though early signs of stabilisation are starting to appear. Summary CIMB’s net profit edged down to  RM1.92 billion (-2.9% YoY)  due to weaker net interest income, but  improving margins and stronger non-interest income signal a potential turnaround ahead . Key Highlights Net profit -2.9% YoY  to RM1.92 billion Net interest income -5%  (margin pressure) Non-interest income +11.9%  (trading & forex gains) ROE: 11.0% CASA ratio improved to 43.3% Gross impaired loans stable at 1.7% CET1 ratio strong at 14.3% Segment Performance Consumer banking:  -23% (higher provisions, lower margins) Commercial banking:  +38% (strong recoveries) Wholesale banking:  -10% (lower one-off income) Digital & funding:  +11.1% (boost from TNG Digital) Key drag: margin compression and higher provisions in consumer segment Early Signs of Stab...

Hong Leong Bank Bhd  posted stronger quarterly earnings, supported by steady interest income and lower taxes, showing resilience in a stable lending environment. Summary Hong Leong Bank’s 3QFY2026 net profit rose nearly  9% to RM1.03 billion , driven mainly by  lower taxation and improved net interest income , despite weaker non-interest income. Key Highlights Net profit +9% YoY  to RM1.03 billion Net interest income +5% Non-interest income -9% Net interest margin stable at 1.83% Gross loans +8.4% Gross impaired loans low at 0.6% No interim dividend declared What’s Driving Performance Stronger lending activity  supported income growth Lower tax expenses  boosted bottom line Stable  net interest margin (NIM)  reflects disciplined pricing Key driver: Core banking income remains solid despite softer fee-based income Strategy & Outlook Management focus: Branch transformation Strategic partnerships AI and digital banking expansion FY2026 targets: R...

Malaysia’s stock market closed lower on April 13, with the  FBM KLCI falling 0.64% to 1,680.52 , as gains in energy counters were offset by weakness in financial and consumer stocks. Broad Market Weakness Despite Active Trading The broader market showed  negative breadth , reflecting cautious sentiment: Losers: 760 vs Gainers: 402 Total trading value:  RM2.64 billion Volume:  2.94 billion shares This indicates  risk-off positioning , in line with global uncertainty driven by rising oil prices and geopolitical tensions. Energy Stocks Lead Gains Energy-linked counters outperformed, supported by higher crude prices: PETRONAS Chemicals Group Bhd   +3.44% PETRONAS Dagangan Bhd   +2.40% MISC Bhd   +1.20% PETRONAS Gas Bhd   +1.10% The rally reflects  stronger earnings outlooks tied to elevated oil prices . Financials and Consumer Stocks Drag On the downside, key laggards included: Hong Leong Bank Bhd   -1.72% CIMB Group Holdings Bhd  ...

China’s state-owned lenders delivered  muted earnings growth in 2025 , highlighting ongoing pressure from  policy-driven lending and shrinking interest margins . Profit Growth Slows Across Major Lenders Agricultural Bank of China  reported  net profit growth of 3.2% to 291 billion yuan , while  Bank of China  posted a weaker  2.2% increase . Similar trends were seen across peers, including  Industrial and Commercial Bank of China  and  China Construction Bank , reflecting  sector-wide earnings constraints . Despite the modest growth, total industry profits still reached  2.38 trillion yuan , up  2.3% year-on-year . Margin Compression Remains Key Headwind The banking sector continues to face a  “double squeeze” : Record-low net interest margins (NIMs) Policy pressure to support economic growth through lending This has limited profitability even as loan volumes expand. Asset Quality Shows Early Signs of Stress While hea...

Chinese banking stocks outperformed the broader market on Friday after reports that regulators may  relax shareholder restrictions , potentially unlocking new capital inflows and boosting sector sentiment. Policy Shift Could Unlock Capital Raising China’s  National Financial Regulatory Administration  is reportedly considering allowing shareholders to  hold stakes of 5% or more in up to four banks , up from the current limit of two. Such a move would: Expand  capital-raising options for banks Encourage  private placements and equity issuance Broaden the  investor base across the sector Bank Stocks Show Relative Strength Despite weakness in the broader market: The  CSI300 Index fell 1% at open The  CSI Banks Index declined only 0.3% and later stabilised This highlights  defensive strength and investor interest  in bank stocks amid policy support expectations. Institutional Demand Could Increase Analysts see the potential rule change ...

Malaysia’s banking sector started 2026 on stable footing, but analysts are increasingly cautious as loan momentum shows early signs of moderation. Loan Growth Holds Near 5% System loan growth stayed close to  5% year-on-year (y-o-y)  in January, according to  HLIB Research . Breakdown of lending trends: Household loans:  ~5% y-o-y Supported by strong residential mortgages and hire purchase financing Business loans:  Moderated to ~4% y-o-y Weaker capital expenditure and working capital demand Loan approvals rebounded sharply, rising nearly  27% y-o-y , driven by business credit demand of around 42%. Key Point: Loan growth remains steady, supported by household lending, but business momentum is softening. Deposits and Margins Deposit growth eased to nearly  3% y-o-y , dragged by weaker fixed deposits and foreign currency savings. However: Current and savings account (CASA) growth rose 8% y-o-y Banks continued optimising funding costs to protect yields Ne...

Market at a Glance U.S. stocks closed mixed , with tech under pressure while financials advanced. Bursa Malaysia fell for a third straight session. Malaysia’s PPI dropped 2.9% YoY , dragged by mining weakness. Maybank posted stronger earnings and declared a 33 sen dividend. Wall Street Recap Dow Jones Industrial Average  rose 0.03% to 49,499.20 S&P 500 Index  fell 0.54% to 6,908.86 Nasdaq Composite  slid 1.18% to 22,878.38 Technology and communication services led losses, while financials gained 1.3%. Major banks including  JPMorgan Chase ,  Bank of America  and  Wells Fargo  supported the sector’s rise. Despite recent AI-related concerns, the software & services segment rebounded, with  Salesforce  jumping 4%. Key Point: U.S. financial stocks outperformed as tech names faced renewed pressure. Bursa Malaysia Snapshot FTSE Bursa Malaysia KLCI  closed at 1,740.94 (-0.39%) Top Gainer:   Sunway Berhad  (+1.88%) Top Los...

CIMB Group Holdings Bhd  has achieved a major sustainability milestone after being upgraded to the  highest MSCI ESG rating of AAA , placing the bank among the world’s top performers in environmental, social and governance standards. The upgrade from AA reflects CIMB’s strong risk management practices, particularly in environmental risk assessment within its credit underwriting. The group also maintained a  high environmental score of 9.2 , underscoring disciplined oversight of climate-related and sustainability risks. Beyond MSCI, CIMB was ranked  No. 1 globally among financial institutions  in the  World Benchmarking Alliance ’s  2025 Financial System Benchmark , and placed  No. 2 worldwide for Inclusive Finance , recognising its role in expanding access to financial services and supporting a just economic transition. Group CEO  Novan Amirudin  said the recognition validates CIMB’s strategy of embedding sustainability directly into dai...

Quick Market Summary Global risk sentiment weakened sharply as fears of a renewed  US–Europe trade war linked to Greenland  triggered heavy selling across equities, spilling over into Asian and Malaysian markets. Wall Street: Trade War Fears Spark Broad Sell-Off US equities slumped after President  Donald Trump  threatened fresh tariffs on European countries opposing his Greenland bid. Dow Jones:   -1.8%  to 48,488.59 S&P 500:   -2.1%  to 6,796.86 Nasdaq Composite:   -2.4%  to 22,954.32 Big Tech names were among the hardest hit, reflecting concerns over retaliatory tariffs and global supply-chain risks. Key takeaway:   Markets are repricing geopolitical risk as trade tensions resurface. Bursa Malaysia: Broad-Based Selling The  FTSE Bursa Malaysia KLCI Index  ended the session firmly lower as cautious sentiment dominated regional trading. KLCI:   1,699.06 (-0.77%) Market breadth:  786 decliners vs 296 gainers ...

Malaysia’s banking sector is in a  stronger position in 2026 than before the pandemic , and remains well supported for further gains despite the recent rally in bank share prices, according to MBSB Research. The research house believes banks continue to offer attractive risk-reward, supported by Malaysia’s improving economic outlook and relative stability compared with neighbouring markets. With fundamentals strengthening across the board,  foreign investor interest is expected to remain a key valuation driver . Why the Banking Sector Still Looks Attractive MBSB Research highlights several structural improvements that set the sector apart from previous cycles: Stronger balance sheets  and capital buffers Improved asset quality  at multi-year highs Better cost discipline  and operational efficiency More disciplined management  and clearer regulatory visibility Despite higher valuations, earnings quality has improved, making current price levels more defensib...

Singapore’s banking sector may still look attractive for  income-seeking investors , but  shrinking interest margins and rich valuations  are set to cap upside in 2026, according to RHB Securities. After delivering  double-digit total returns in 2025 , Singapore banks are entering a more challenging phase where  dividend strength remains, but growth momentum fades . The Big Picture RHB expects  more modest returns for Singapore banks in 2026 , despite a supportive macro backdrop. What supports the sector Stable macroeconomic environment Strong wealth management inflows Sound asset quality High dividend yields What holds it back Net interest margin (NIM) compression Elevated sector valuations Limited room for valuation re-rating without higher ROEs “In the absence of a meaningful rise in ROEs, headroom for further valuation expansion may be limited.” Dividend Yields Still Attractive (FY26F) Despite margin pressure, dividends remain a key draw: DBS :  6....