Moody’s: COVID-19 Put Profit Pressure on Malaysia’s “BIG 3” Banks

Moody's Investors Service (Moody's) stated that the three largest banks (based on assets) in Malaysia are under growing pressure with regard to profitability due to the COVID-19-driven economic downturn.

The rating agency's latest assessment follows the release of Q1-2020 financials by the three banks namely, Malayan Banking (Maybank), CIMB Group Holding (CIMB) and Public Bank (PB).

According to Moody's Vice President and Senior Credit Officer, Alka Anbarusa, a significant rise in the cost of financing and the deterioration of net interest margins (NIM) would weigh on the profitability of all three banks in 2020. Alka also suggested that damage on asset quality would only become obv...