The loss reported of Petronas on last Q 2014 was because of one time write off on the valuation of asset.
Asset valuation adjustment is just like you holding plenty of stocks in warehouse, now value goes down, then you need to make a provision for writedown in value in the account book.

Production of oil still profitable at price range of USD50~60 range (Tapis crude (Malaysia oil) price normally roughly the same with Brent, not the same with WTI), not something surprise to see still able to registered ten of billion profit.

Sorry a bit OT.

Put 2 years easier lah, 8.57%.

Edit
better put 1 month 3%.

1 year 36%.

This post has been edited by cherroy: Aug 19 2015, 12:50 PM

4.285%?

5% also got as claimed, but don't know how it is calculated then...

How come FD fan club in lowyat doesn't know there is 5% 12 months FD?
All fail already...

Since when FD interest rate got quoted in nominal rate one?

Please guide FD fan club here to get 5% 12 months. Ty.

Many forumers will thank you big time.

wah, really powderful maths here.
Less than 12 month, effective.
More than 12 months, nominal.

May be we should pin this post in the collection of "classic post of lyn".

Never mind, I guess many do have a happy day in FD thread for today.

Fed is expected to raise rate in September.
But with the turbulence and wild drop in the stock market, it basically may handicap Fed to raise rate for near term.

10 years treasuries plunged below 2% last night basically signal that rate hike chance is becoming minimal.

Liquidity still ample, banks do not need to raise FD rate to attract more fund.

Klibor is the best indicator for liquidity situation, not stock market.

Yup, I think so, especially with the stock market wild swing to the downside that basically handicap Fed to raise rate.

To raise rate at current point to "sink" down the market further could jeopardize the economy growth.

The economy may head into more south with hike in interest rate.

The depreciation of RM is not because of low interest rate, but other issues.
So increase in interest rate is not solving the problem.
Solve those problem, RM will rise naturally.

BNM under Zeti has good reputation in term of managing the monetory policy, so highly the interest rate will be status quo.

This post has been edited by cherroy: Aug 31 2015, 09:33 PM

Board rate is not increasing at all and Klibor rate doesn't shoot up as well which suggested that liquidity is not a major issue.

Bank resort to promotion rate instead of board rate that being offered from time to time, means banks require certain amount of liquidity but reluctant to commit entirely that may result in increase in cost of funding.
If banks are struggling for liquidity, you see board rate being raised across.

The liquidity definition will be changed due to Basel III which resulted banks need to attract more long term stable deposit, eg. deposit less than 3 months, like FD below 3 months, current and saving account type of deposit are not taken into the calculation of liquidity coverage ratio that needed (something like that, as I am not 100% correct on this, as just glance through it, quite complicated), so we see banks offering long term FD across under promotion instead of short term one.
Also many are using step up rate instead of one long term rate, means that they also reluctant to commit long term, as rate of step up FD can be revised if there is a drop in OPR.

If the interest rate is poised to be up, banks want to lock up the rate long term one, where they can make the most profit from it.

Also, if there is liquidity shortage within domestic bank funding, BNM has the ability to provide those liquidity needed as well.

Banks do not like OPR to be increased, as it may increase NPL as well as affected loan growth which eventually may affect their bottom line.
An OPR increase at current situation may worsen the situation, instead of helping them.

Banks like to operate in low interest rate environment, not higher.


Outflow of RM has nothing to do with interest rate of RM, but other issues.
Solve those issues, then outflow will stop, this is the root solution.

This post has been edited by cherroy: Sep 1 2015, 09:29 PM

If Note 5 is given complimentary with FD 3.88%, I guess you will see many FD fans in this forum will queue up long long in front of the bank...

There is no FD promo with free Note 5.

Note 5 is given for Casa deposit only, not FD.

There is no PB FD promote with free Note 5.

Don't know how many times need to post this...

Actually, A bank and A islamic bank are 2 different and independent entity. They do not cross linked each other in term of transaction and operation, even through they are operated under the same branch, same parent company.

Capital guaranteed /= return guaranteed

They both carry different meaning all together.
Becareful the term being presented.

If interest rate is going up, secondary bond price may be go lower one.

There is no free lunch, when one is able to get higher return, then there is almost certain extra risk needs to be taken.

FD
- guaranteed the capital, even premature withdrawal
- guaranteed the interest rate set

Bond
- guaranteed the face value of the bond if held until maturity with no default, while premature withdrawal is subjected to secondary demand of the bond aka based on secondary bond pricing.
- based on the coupon rate on face value when first published

Bond although can be sold at anytime, if doesn't guaranteed you won't make a loss if secondary bond market going down.

If only guaranteed when you held until maturity.

Somemore, if you enter the bond not at face value or during initial issuing, it just means you buy the bond at secondary market, which could be higher or lower than the face value.

There are plenty of corporate bond available even for overseas and denominated in USD or other foreign currency.
Not just one or a few local.

Yes, you can.

You get the 4.05% full after 6 months.

You can use this as short term (6 months FD) as well.

Tell the officer to read the T&C

https://www.pbebank.com/pdf/Promotions/tc-pbfdextra.aspx