Maybank denies that it will face fiscal trouble on Genting HK exposure

by NUR HANANI AZMAN/ pic by BLOOMBERG

MALAYAN Banking Bhd (Maybank) says the allegations that it will face major financial trouble due to exposure to Genting Hong Kong as baseless.

“While we do not comment on our exposure to customers or alleged customers owing to confidentiality obligations, Maybank would like to re-enforce that it observes strict accounting treatment related to provisioning and impairment of loans, as per International Financial Reporting Standard (IFRS) & Malaysian Financial Reporting Standard (MFRS) requirements, and these accounting treatment are also subjected to comprehensive reviews by our external auditors and regulators,” Maybank spokesperson told The Malaysian Reserve (TMR).

“Maybank has a rigorous asset quality monitoring process, whereby vulnerable borrowers are identified and managed accordingly from the onset of any potential asset quality weakness,” the spokesperson added.

As such, loan provisioning will be proactively made from the beginning of any such asset quality weakness based on the borrower’s risk rating with the Bank.

“Therefore, Maybank would like to state that our current net credit charge of guidance for loan provisioning remains unchanged and we can confirm that our financial position remains strong..”.

It is reported that three Malaysian bank’s profits are set to take a major hit as trouble looms over cruise operator Genting Hong Kong — a major Asian corporate casualty of the Covid-19 pandemic.

A report by Singapore’s Straits Times said that how Maybank, CIMB and RHB — among some the chief unsecured creditors of Genting Hong Kong, with a combined exposure of US$600 million (RM2.5 billion) — decide to move forward in dealing with the group would determine if the cruise operator sinks or swims.