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Next 2 quarters Public Bank's profits will be affected by Hire Purchase Moratorium extended to Oct 2020 which gives totally no accrued interest income to the Bank. PBB owned the highest market share in Hire Purchase market hence their profits on this segment will be impacted more compared to other Banks.
You sure Hire Purchase biggest market share is Affin Bank? Plz do your market check 1st. And I'm not saying the Non Performing Loan (NPL), I'm saying the profits from the Hire Purchase Segment will be affected due to Moratorium for Hire Purchase gives no income at all for accrue interest unlike the other loans' Moratorium will gives accrue interest income to the Bank.
I'm not giving opinion of buying or selling shares, I'm just sharing out the facts that that PBB Hire Purchase Segment will be affected more compared to other Banks as they have huge market share in HP. Bear in mind HP moratorium will not give any accrue interest to the Banks hence Banks' Profits in Profit and Loss Statement will be affected unlike the other loans are still giving profits to the Bank with accrue interest charged to customers in Moratorium period.
Plz look at the news today, Banks are still negotiating with government and BNM for alternatives instead of HP Moratorium with no accrue interest. They know the current practice will not give any benefits to the Banks.
Just saw the article, it mentioned it's "proportion" of its loan portfolio not the market share.
All the Banks will be affected due to this HP Moratorium and Affin Bank will be the hardest hit as their HP proportion in their loan portfolio owned 23.2%.
But in term on volume and and market share, PBB will be the hardest hit as the size of their loan portfolio are totally different with Affin and Ambank.
Don't know oh, but the edge have financial writers for this kind or articles. I got one uni senior who is currently the financial writer in the edge, they got many sources one, even like last time 1mdb case they also can get the news before everyone knows it.
