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BNM: Financial Sector Still Resilient With Strong Capitalisation
Bernama
KUALA LUMPUR, Feb 24 (Bernama) -- The country's financial sector remained resilient in the fourth quarter of 2009 with strong capitalisation, improving non-performing loan (NPL) ratio and ample liquidity.
The banking, insurance and takaful sectors recorded improved profitability in the quarter, Bank Negara Malaysia said in a statement Wednesday.
This enabled the financial sector to continue supporting financing activity and providing the necessary financial services to the economy, the central bank said.
As at end-December 2009, the risk-weighted capital ratio of the banking system was 14.7 per cent while core capital ratio stood at 13.1 per cent.
Capital in excess of the minimum regulatory requirement was maintained at more than RM50 billion.
Loan quality remained favourable with the continued downtrend in NPLs, Bank Negara said.
The net NPL ratio improved to 1.8 per cent as at the end of the quarter, with a loan loss coverage of 95.2 per cent, it said.
The banking system recorded a pre-tax profit that totalled RM5.2 billion during the quarter, supported by an increase in fee-based income and higher investment gains, it added.
Bank Negara said the capital adequacy ratio of the insurance industry remained strong at 230.3 per cent (third quarter 2009: 214.7 per cent).
Overall profitability of the insurance and takaful sector increased to RM3.7 billion (fourth quarter 2008: RM1.7 billion), driven mainly by improvements in the performance of the equity market and in business conditions.
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