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HwangDBS maintains 'hold' call on Bank Islam

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HwangDBS maintains 'hold' call on Bank Islam Empty HwangDBS maintains 'hold' call on Bank Islam

Post by Cals Tue 01 Apr 2014, 13:55

HwangDBS maintains 'hold' call on Bank Islam
Business & Markets 2014
Written by Bernama   
Tuesday, 01 April 2014 13:41

KUALA LUMPUR (Apr 1): HwangDBS Vickers Research has maintained its "hold" call on Bank Islam Malaysia Bhd as it expects a neutral impact on the bank's current net interest margin (NIM).

The research firm said under the Islamic Financial Services Act 2013 (IFSA), Islamic banks need to distinguish between deposits and investment accounts, and Murabahah or Wakalah account holders need to decide which contract they prefer on their risk appetite.

However, it said, the accounting treatment could affect the balance sheet valuation of investment accounts.

"We do not expect a large deposit outflow as the bank is actively engaging its customers during this transaction period (ending Jun 2015).

"Although there are cost savings from a capital perspective, they are offset by higher administrative and funding costs," it said in a research note today.
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