Thursday, September 2, 2010

Banking Sector Update : 2QCY10 Report Card – Lower Impairment Allowances For Loans Help Beat Forecasts - 02/09/2010

♦ Earnings momentum gathered steam … 2QCY10 earnings gathered
further momentum, with five of the eight banking stocks that we cover
reporting quarterly numbers that beat our as well as consensus
expectations. The most common variance was due to lower-thanexpected
impairment allowances for loans (Affin, AFG, AMMB and HL
Bank). Other causes for the stronger-than-expected results were: 1)
strong non-interest income contribution (AMMB); 2) overheads that were
well controlled (EON Cap); and 3) lower-than-expected effective tax rate
(HL Bank).

Banking Sector Update : 2QCY10 Report Card – Lower Impairment Allowances For Loans Help Beat Forecasts - 02...

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