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 Quality of Banks' Corporate Customers

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TSYggdrasil
post Mar 25 2020, 08:57 AM

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QUOTE(GodTier @ Mar 25 2020, 07:15 AM)
To me, that also makes public bank is rooted in small private business owners. Instead of big corporations.

they are outside of msia crony circle.  Besides hongleong and public, all others are sucked into msia main.

Or, instead of public bank not lending the big corporations, could be the big companies are boycotting public bank

Correct ah? I hentam only
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One kind member just said (quote Verbatim):

1) What the other guy said about MBB is true, big GLC firms are obliged to bank with MBB. They are considered as the ‘official’ banker of Gov and most GLC firms.
2) why most cash rich companies bank with PBB not others? You have to understand that facilities provided by PBB has a strict collateral of 1:1.
Loan RM500k? you have to pledge or PBB will charge RM500k worth of your property, factory etc. Other banks can easily do 1:5 or 1:7, which explains why high gearing companies USUALLY do not bank with PBB.


QUOTE(GodTier @ Mar 25 2020, 07:27 AM)
Also, you are comparing different sector.

Boustead should be comparable to mmhe

Sapura should be compared to dayang, bumi armada, carimin etc

Why pos not yet pn17, so low performance lol
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PN17 got few criteria one.
Default is default. Industry may influence it but usually it the company's inability to pay.

Cubalagi
post Mar 25 2020, 11:41 AM

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Why banks go up today? Quite strong some more?

I tot the loan deferment is not good news for banks?

icemanfx
post Mar 25 2020, 11:49 AM

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QUOTE(Cubalagi @ Mar 25 2020, 11:41 AM)
Why banks go up today? Quite strong some more?

I tot the loan deferment is not good news for banks?
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In the short term, the market is on random walk.
backspace66
post Mar 25 2020, 11:55 AM

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Correct me if i am wrong. Loan deferment will affect bank cash flow but in the end bank gain more due to compounding interest on the deffered amount assuming most borrower managed to get back on their feet and pay their dues of course.

This post has been edited by backspace66: Mar 25 2020, 11:57 AM
TSYggdrasil
post Mar 25 2020, 12:08 PM

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QUOTE(backspace66 @ Mar 25 2020, 11:55 AM)
Correct me if i am wrong. Loan deferment will affect bank cash flow but in the end bank gain more due to compounding interest on the deffered amount assuming most borrower managed to get back on their feet and pay their dues of course.
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No. Banks lose due to time value of money because they pay interest to depositors but only collect interest from borrowers later.
backspace66
post Mar 25 2020, 12:28 PM

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QUOTE(Yggdrasil @ Mar 25 2020, 12:08 PM)
No. Banks lose due to time value of money because they pay interest to depositors but only collect interest from borrowers later.
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If we can compare the interest paid to a simple deposit account compared to the average mortgage, the interest is so much lower. Even the fd rate is still much lower than the average mortgage interest.

But if this move can reduce NPL and foreclosure, in the end , it is still good for the bank.

TSYggdrasil
post Mar 25 2020, 12:37 PM

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QUOTE(backspace66 @ Mar 25 2020, 12:28 PM)
If we can compare the interest paid to a simple deposit account compared to the average mortgage, the interest is so much lower. Even the fd rate is still much lower than the average mortgage interest.

But if this move can reduce NPL and foreclosure, in the end , it is still good for the bank.
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I'm comparing before and after. They don't lose in the sense they go bankrupt but their profits will be slightly affected due to deferment of interest received.
cklimm
post Mar 26 2020, 07:46 PM

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PBB is one of the kiasiest around, those companies must be financially sound enough to have their loan.

 

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