Quarterly Bulletin

Fourth Quarter 2008

Developments in the banking sector

The banking sector remained resilient with

key financial soundness indicators at healthy Banking System: Non-performing Loans
levels. With a sound financial position and RM billion % net loans
ample liquidity, the banking system remains 50 12
10
well-positioned to weather the challenging 40
8
30
environment envisaged in 2009, whilst 3-month 6
20
continuing its intermediation role effectively to 10
4
Dec-08: 2.2% 2
support the financial needs of the economy. 0 0
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
2004 2005 2006 2007 2008
Capitalisation level remained high Net NPL Net NPL ratio (RHS)
Source: Bank Negara Malaysia

As at end-December 2008, the banking

system’s risk-weighted capital ratio (RWCR)
and core capital ratio (CCR) was at 12.7% and Level of non-performing loans
10.6% respectively. Capital base moderated continued to decline
marginally by 0.3%, mainly on account of
higher investments in subsidiary companies. Sistem
The qualityperbankan: Pinjaman
of banking tidak
system berbayar
loan portfolio
Nevertheless, excess capital above the recorded
RM bilion
further improvement during the
% pinjaman bersih
minimum 8% requirement remained high at quarter. Net NPLs declined by 5.0% to
50 12

RM38.8 billion at end-2008. RM15.8 billion (3Q 08: RM16.6 billion) to 10

40
8
account
30
for 2.2% of3 bulan
total net loans as at 6
20
end-2008 (3Q 08: 2.4%). 4
10 2
Banking System: Capital Position Dis-08: 2.2%
0 0
2007 2008 Dis Mac Jun Sep Dis Mac Jun Sep Dis Mac Jun Sep Dis Mac Jun Sep Dis
2004 2005 2006 2007 2008
4Q 1Q 2Q 3Q 4Q
NPL bersih Nisbah NPL bersih (sekala kanan)
Capital
Sumber: Bank Negara Malaysia
CCR (%) 10.2 10.4 10.8 10.6 10.6
RWCR (%) 13.2 13.3 13.6 13.0 12.7

Source: Bank Negara Malaysia

Profitability remained high amidst

challenging environment

The banking system recorded a pre-tax profit

(PBT) of RM5.1 billion (3Q 08: RM 4.0 billion)
during the quarter supported by better performance
of treasury-related activities and improved
interest income from intermediation activity. The
annualised average returns on assets and equity
remained stable at 1.5% (3Q 08: 1.5%) and 18.6%
(3Q 08: 18.7%) respectively.

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