Latest news with #RM23.2bil
The Star
4 days ago
- Business
- The Star
Local banks positioning for potential OPR cut
HLIB Research noted that fixed deposit competition appeared benign with no significant board rate hikes observed. PETALING JAYA: Local banks are positioning for a potential overnight policy rate (OPR) cut in the second half of the year by paring back deposit rates and recalibrating fixed deposit (FD) strategies. In April, total deposits grew 3.8% year-on-year (y-o-y) and 0.2% month-on-month (m-o-m), supported by current account savings account (CASA) growth of 4.5% and FD growth of 2.5%. The CASA ratio held relatively stable at 28.5%, slightly lower than 28.6% in March 2025 but up from 28.4% a year ago. Meanwhile, the industry's loan-to-deposit ratio (LDR) eased to 87.4%, from 87.6% in the previous month and 86.3% in April 2024. Hong Leong Investment Bank (HLIB) Research noted that fixed deposit competition appeared benign with no significant board rate hikes observed. However, it flagged some cuts of between five and 15 basis points (bps) in promotional and conventional deposit rates across May. 'This is seen as a proactive step taken by banks to manage net interest margin (NIM) in view of the potential OPR cut, and possibly as a sign of easing competition,' it noted in a report yesterday. Similarly, Kenanga Research highlighted that most banks anticipate one OPR cut in 2H25, prompting 'more concerted efforts to drive shorter-term fixed deposit products.' It pointed out that fixed deposits with a tenure of fewer than six months made up 52% of total deposits in April 2025, compared with 51% in March 2025, while deposits with tenures of more than one year declined from 3% to 2%. 'This may likely persist as banks seek to further rationalise their funding cost amid the decline in asset yields,' it said. 'However, as the recent reduction in statutory reserve requirement (SRR) looks to provide some relief to funding cost (up to two bps improvement to NIMs), we believe banks can afford to not overly raise deposit rates to accumulate capital in the near term.' Last month, Bank Negara kept the OPR at 3% but lowered the SRR ratio by 100 bps to 1%, effective May 16 – the first SRR reduction since March 2020, at the start of the Covid-19 pandemic. CGS International (CGSI) Research pointed out that over the first four months of 2025, deposits increased by RM30.8bil, outpacing loan growth of RM23.2bil, 'reflecting improvements in the liquidity of the banking industry, in our view.' 'We believe the cut in the SRR by Bank Negara would release about RM19bil into the banking system, and would further enhance banks' liquidity,' the research house added. Meanwhile, in April 2025, total loans grew by 5.1% y-o-y and 1.0% year-to-date, a marginal slowdown from 5.2% y-o-y in March. The moderation was mainly attibuted to the slightly softer business loan growth, which eased to 4.6% y-o-y versus 4.8% in March. On the other hand, household loans held firm at 6% y-o-y for a second straight month. The industry's gross impaired loans ratio inched up to 1.43% in April from 1.42% in March, but improved from 1.63% a year ago, while loan loss coverage held relatively steady at 91%. CGSI Research viewed the slowdown in loan growth as 'not overly concerning,' noting that the expansion remains within its 2025 loan growth forecast of between 4.5% and 5.5%.
The Star
22-05-2025
- Business
- The Star
YTL Corp quarterly revenue increases
PETALING JAYA: YTL Corp Bhd expects the performance of its business segment to remain resilient going forward due to the essential nature of its operations. For the third quarter ended March 31, 2025 (3Q25), the group posted a 15.5% year-on-year (y-o-y) decline in net profit to RM419.4mil, translating to an earnings per share of 3.81 sen. This is despite a higher revenue which grew by 1.5% y-o-y to RM7.3bil. For the nine-month period ended March 31, 2025 (9M25), YTL Corp's net profit was down by 17% y-o-y to RM1.3bil, while revenue was up by 4% y-o-y to RM23.2bil. Earnings before interest, tax, depreciation and amortisation for 9M25 remained steady at RM6.9bil, compared with RM7bil in 9M24. YTL Group executive chairman Tan Sri Francis Yeoh Sock Ping said the group delivered solid results for the period under review, with all divisions continuing to turn in healthy performances. 'Results from our utilities segment moderated following an exceptional performance driven by the power generation sub-segment in Singapore last year, and we continue to see good turnaround in the UK water and sewerage sub-segment,' he said in a statement yesterday. Yeoh added that the cement division recorded a strong set of results, whilst higher revenue in the construction segment due to an increase in work volumes from third-party construction projects was impacted by elevated construction costs. 'Meanwhile, the hotel division continued to achieve higher occupancy rates and stronger average room rates across key properties,' he said. YTL Power, meanwhile, recorded a revenue of RM16.25bil for 9M25 compared to RM15.98bil for the corresponding 9M24. Profit before tax decreased to RM2.24bil for the current period under review over RM2.88bil for the same period last year, whilst profit after tax stood at RM1.79bil this year compared to RM2.39bil for the same period last year. YTL Power executive chairman Yeoh said the group's performance remained strong for the financial year to date, prompting a higher interim dividend of four sen per share. 'Performance of the power generation segment in Singapore has continued to moderate on the back of lower pool and retail prices, following exceptional results seen last year. 'In our water and sewerage segment, higher revenue resulted from the increase in price allowed by the UK regulator, as well as revenue contribution from our operations in Malaysia, with profit improving primarily due to the said price increase in the United Kingdom, coupled with the decrease in inflationary pressures on index-linked bonds,' he said. Yeoh added that the telecommunication segment recorded better performance in the current period due to higher project revenue, whilst in the investment holding segment, higher revenue was contributed mainly by the consultancy services sub-segment, although profit was impacted by unrealised foreign-exchange losses. YTL Power declared a higher interim dividend of four sen per ordinary share in respect of the financial year ending June 30, 2025, compared to three sen per ordinary share declared in the corresponding quarter last year. The book closure and payment dates for which are June 25, 2025 and July 10, 2025, respectively. Malayan Cement's revenue remained stable at RM3.42bil in 9M25 compared to RM3.41bil for the corresponding 9M24. Profit before tax increased 43% to RM718.3mil for the nine months under review compared to RM503.4mil for the same period last year, whilst profit after tax rose 59% to RM507.5mil in the current period under review over RM318.7mil for the same period last year. Malayan Cement executive chairman Yeoh said the better performance was due to improved operational efficiencies, lower production costs, reduced borrowing costs and the absence of recognition of share option costs in the current quarter, coupled with a one-off gain from a compulsory land acquisition recorded in the last quarter. YTL Hospitality-REIT recorded a revenue of RM421.3mil for 9M25, approximating that of the corresponding 9M24, whilst net property income grew 2% to RM228.1mil compared to RM223.7mil for the same period last year.
The Star
22-05-2025
- Business
- The Star
YTL Corp expects its business to stay resilient
PETALING JAYA: YTL Corp Bhd expects the performance of its business segment to remain resilient going forward due to the essential nature of its operations. For the third quarter ended March 31, 2025 (3Q25), the group posted a 15.5% year-on-year (y-o-y) decline in net profit to RM419.4mil, translating to an earnings per share of 3.81 sen. This is despite a higher revenue which grew by 1.5% y-o-y to RM7.3bil. For the nine-month period ended March 31, 2025 (9MFY25), YTL Corp's net profit was down by 17% y-o-y to RM1.3bil, while revenue was up by 4% y-o-y to RM23.2bil. Earnings before interest, tax, depreciation and amortisation for 9MFY25 remained steady at RM6.9bil, compared with RM7bil for 9MFY24. YTL Group executive chairman Tan Sri Francis Yeoh Sock Ping said the group delivered solid results for the period under review, with all divisions continuing to turn in healthy performances. 'Results from our utilities segment moderated following an exceptional performance driven by the power generation sub-segment in Singapore last year, and we continue to see good turnaround in the UK water and sewerage sub-segment,' he said in a statement yesterday. Yeoh added that the cement division recorded a strong set of results, whilst higher revenue in the construction segment due to an increase in work volumes from third-party construction projects was impacted by elevated construction costs. 'Meanwhile, the hotels division continued to achieve higher occupancy rates and stronger average room rates across key properties,' he said. YTL Power recorded revenue of RM16.25bil for 9MFY25 compared to RM15.98bil for the corresponding 9MFY24. Profit before tax decreased to RM2.24bil for the current period under review over RM2.88bil for the same period last year, whilst profit after tax stood at RM1.79bil this year compared to RM2.39bil for the same period last year. YTL Power executive chairman Yeoh said the group's performance remained strong for the financial year to date, prompting a higher interim dividend of 4 sen per share. 'Performance of the power generation segment in Singapore has continued to moderate on the back of lower pool and retail prices, following exceptional results seen last year. In our water and sewerage segment, higher revenue resulted from the increase in price allowed by the UK regulator, as well as revenue contribution from our operations in Malaysia, with profit improving primarily due to the said price increase in the UK, coupled with the decrease in inflationary pressures on index-linked bonds,' he said. Yeoh added that the telecommunication segment recorded better performance in the current period due to higher project revenue, whilst in the investment holding segment, higher revenue was contributed mainly by the consultancy services sub-segment, although profit was impacted by unrealised foreign exchange losses. YTL Power declared a higher interim dividend of 4 sen per ordinary share in respect of the financial year ending June 30, 2025, compared to 3 sen per ordinary share declared in the corresponding quarter last year. The book closure and payment dates for which are June 25, 2025 and July 10, 2025, respectively. Meanwhile, Malayan Cement's revenue remained stable at RM3.42bil for 9MFY25 compared to RM3.41bil for the corresponding 9MFY24. Profit before tax increased 43% to RM718.3mil for the nine months under review compared to RM503.4mil for the same period last year, whilst profit after tax rose 59% to RM507.5mil in the current period under review over RM318.7mil for the same period last year. Malayan Cement executive chairman Yeoh said the better performance was due to improved operational efficiencies, lower production costs, reduced borrowing costs and the absence of recognition of share option costs in the current quarter, coupled with a one-off gain from a compulsory land acquisition recorded in the last quarter. 'The group's ongoing cost reduction and efficiency efforts, supported by strong leadership and innovation, have yielded positive results. All business units contributed to the improved performance, showcasing the strength of the group's diversified portfolio, with the ready-mix concrete business excelling in delivering high-value, bespoke products tailored to the evolving needs of the construction industry,' he said. Meanwhile, YTL Hospitality REIT recorded revenue of RM421.3mil for 9MFY25, approximating that of the corresponding 9MFY24, whilst net property income grew 2% to RM228.1mil for the current period under review compared to RM223.7mil for the same period last year.
