UOB Malaysia sees higher credit costs in FY20: CGS-CIMB

SINGAPORE (July 6): Amid calls for the Malaysian government to extend the loan moratorium, United Overseas Bank’s Malaysian operations could see higher credit costs ahead, according to CGS-CIMB Research.

Management expects credit costs to rise to about 50 to 60 basis points in FY20, the brokerage points out, following a conference call with UOB Malaysia’s (UOBM) CFO Chang Yeong Gung.

This will likely stem from its corporate portfolio, though exposures to vulnerable sectors accounted for a relatively “manageable” 3% of UOBM’s gross loans in 1Q20, says CGS-CIMB.

---

Related Stories

• UOB ‘making steady progress’ on upcoming fintech lab in SIT Punggol
• UOB to grow organically through seamless connectivity
• UOB’s Wee on driving business through values and culture

---