Latest news with #OCBCBank(M)Bhd
The Star
3 days ago
- Business
- The Star
OCBC Bank named Private Wealth Bank of the Year at Asian Banking & Finance Awards 2025
OCBC Bank (M) Bhd managing director and head of consumer financial services Sammeer Sharma KUALA LUMPUR: OCBC Bank (M) Bhd has been named Malaysia's Private Wealth Bank of the Year at the Asian Banking & Finance Retail Banking Awards 2025. It also received the Branch Innovation of the Year award at the same event. The awards highlight OCBC's 18,000-square-foot Premier Private Client Centre in Bangsar, which combines luxury, privacy, and personalised wealth management in a tranquil, nature-inspired setting close to the city centre. Managing director and head of consumer financial services Sammeer Sharma said the awards reflect OCBC Group's standing as a major player across Asean and Greater China, with deep expertise in wealth management and a proven track record in serving affluent clients. 'In Malaysia, OCBC Bank is a leading bank in the affluent segment, with a strong foundation for continued growth. These awards affirm our commitment to redefining wealth management through innovation and client-centricity. 'The OCBC Premier Private Client Centre is a testament to our One Group approach, which integrates best-in-class financial solutions with bespoke experiences in a truly inspiring setting. With the strategic investments we are making and the immense growth opportunities within Malaysia, we are confident of doubling our affluent client base over the next five years,' he said in a statement. The centre serves as a strategic anchor for the Bank's high-net-worth offerings, tailored for individuals with assets under management of RM3mil and above. It offers a comprehensive range of wealth solutions across 11 major currencies, with over 80% of its product shelf linked to sustainability.
The Star
20-07-2025
- Business
- The Star
Banks on strong footing
PETALING JAYA: The Malaysian banking sector, a bellwether of the economy, faces indirect pressures from mounting global uncertainties induced by the harsh US tariff policies and rising geopolitical tensions. These headwinds could impact supply chains and lower demand for some industries, potentially resulting in elevated credit risks for banks. Despite these challenges, the sector, according to banking experts, is still on a strong footing, thanks to its strong capital position, stringent risk governance and the country's proactive move of forming trade partnerships and broadening its export markets. All these bodes well for the banking sector going forward. OCBC Bank (M) Bhd chief risk officer Priya Ranjan Sharma told StarBiz the banking sector continues to face headwinds this year, driven by persistent geopolitical tensions and the possibility of 25% reciprocal tariffs imposed by the United States. The tariffs would take effect on Aug 1. 'These developments, particularly the strained trade relations between China, the United States, and its regional partners, pose risks to supply chain stability and investor sentiment. Given the importance of United States as a trading partner to Malaysia, the tariffs may impact export volumes and revenues, placing pressure on the broader economy. 'Malaysia's strategic role in the China+1 supply chain diversification offers some resilience. 'The government is actively working to diversify export markets and stimulate domestic investment and consumption to cushion the impact. 'Structural reforms and increased public infrastructure spending are expected to support growth, though at a more moderate pace, with gross domestic product projections revised downwards,' he said. Despite these challenges, Ranjan Sharma said Malaysia's banking sector remains fundamentally sound. Banks are well-capitalised and maintain diversified portfolios which helps limit systemic risk and ensures continued financial stability in the face of external pressures, he noted. UCSI University Malaysia associate professor of finance and Centre for Market Education research fellow Liew Chee Yoong UCSI University Malaysia associate professor of finance and Centre for Market Education research fellow Liew Chee Yoong said the local banking sector is expected to face moderate indirect pressures this year from elevated US tariffs and geopolitical tensions, though systemic resilience should prevent severe disruption. He said while recent US reciprocal tariffs (targeting solar cells and semiconductors) have limited direct impact on core banking activities, secondary effects could materialise through supply chain friction and reduced business confidence. Liew said export-oriented industries, particularly electronics and commodities may experience weakened demand, potentially elevating credit risks for banks' corporate portfolios. 'Concurrently, escalating South China Sea tensions and US-China tech decoupling could disrupt regional trade flows and investment. 'Nevertheless, the banking sector's robust capital adequacy level with common equity tier-1 capital ratios of about 15%, stringent risk governance, and Malaysia's diversified trade partnerships should mitigate material deterioration. 'Banks remain well-positioned to absorb shocks, though vigilance toward trade finance non-performing loans and working capital stress in vulnerable sectors is warranted,' he said. In terms of loan growth for this year, Ranjan Sharma expects loan growth to remain resilient. Growth drivers such as ongoing infrastructure developments and strategic investment initiatives like the Johor-Singapore Special Economic Zone could help support demand, he said. On the consumer side, he said loan growth is projected to stay steady, underpinned by stable employment conditions and consistent income levels. Liew said loan growth is projected to moderate to between 4% and 5% this year, down from 5.5% last year, with business loans emerging as the primary engine of growth. He said net interest margins (NIMs) are anticipated to stabilise or edge marginally higher by 0.5 basis points (bps) this year after compression last year, contingent on deposit competition easing and monetary policy adjustments. 'However, a potential 25bps overnight policy rate (OPR) cut in the later part of the year could reintroduce NIM volatility, initially compressing yields on variable-rate loans before lower funding costs provide offsetting relief. 'Strategic repricing of loans and proactive liquidity management will be critical for banks to defend margins. 'Overall, NIM trends will remain range-bound, lacking significant upward momentum but avoiding steep deterioration,' Liew noted. A bank's NIM is a key profitability indicator that reflects the difference between the interest income a bank earns from loans and the interest it pays on deposits. A wider NIM indicates higher earnings for banks. Ranjan Sharma said NIM across the banking sector is expected to experience some compression following the recent cut in the OPR. He said additional pressure may arise from heightened competition for deposits as institutions seek to maintain funding stability. Furthermore, slower global trade, driven by escalating tariffs and geopolitical tensions, could weigh on sector performance, he noted. In particular, he said higher US reciprocal tariffs may dampen loan growth in export-oriented industries, adding to the cautious outlook. Bank Negara lowered the OPR by 25bps to 2.75% on July 9, describing the decision as a pre-emptive move to secure economic growth. On profitability, Liew said: 'The Malaysian banking sector's profitability in 2025 is projected to remain resilient, with return on equity stabilising at 10% to 11%, marginally below 2024 levels but reflective of disciplined adaptation to external headwinds. 'This stability will be anchored by three synergistic pillars: diversified revenue streams, operational efficiency, and prudent risk management. 'Non-interest income particularly from wealth management (amplified by the EPF Account 3 rollout), digital transaction fees, and capital market activities will counterbalance potential NIM compression.' RAM Rating Services Bhd senior vice-president of financial institution ratings Wong Yin Ching RAM Rating Services Bhd senior vice-president of financial institution ratings Wong Yin Ching said the OPR rate cut will transmit fairly quickly into the real economy, easing household and business finance expenditures. This may limit the rise of impaired loans within marginal segments in the near term, she said. 'That said, asset quality remains sound and is not a major concern, with the banking system's gross impaired loan ratio expected to come in at 1.50% as of the end of this year (end-May: 1.45%). 'Considering uncertainties on the horizon, the banking system will likely experience moderating loan growth this year relative to last year. The five months annualised loan growth for this year stood at 3.5%, compared with 5.5% last year. 'Banks are likely to see only a mild impact on their NIM from the OPR cut. The average NIM of eight selected local banks clocked in at 2.06% and 2.04% in last year and 1Q25, respectively,' Wong said. Based on RAM's past discussions with banks, she said most indicated that a 25bps cut typically results in a full-year NIM contraction of about 2bps to 3bps. Wong said the earlier reduction in the Statutory Reserve Requirement from 2% to 1% in May is expected to offer a slight cushion to margins by releasing some funds for redeployment into higher-yielding assets.
The Star
09-07-2025
- Business
- The Star
Kluang primary school receives RM29,400 in digital aid, books from bank
OCBC Bank Kluang branch provided reference books and digital learning aid to SJKC Chong Hwa 2. A TOTAL of 433 students of SJKC Chong Hwa 2 in Kluang, Johor are better equipped for learning after receiving RM29,400 worth of digital aid and books from OCBC Bank (M) Bhd. The bank's contribution included a smartboard with visualiser, 10 information boards and 28 reference books, provided through its Kluang branch. The support was part of the 'Aided to Aspire' programme under the education pillar of #OCBCCares. SJKC Chong Hwa 2 principal Tan Guan Sen said the items came at an ideal time and addressed a long-standing need for improved digital infrastructure at the school. 'We have been looking at ways to provide a better learning experience for our students and we cannot ignore that digital is the way forward. 'We are grateful for this contribution and their generosity. 'The contribution will have a meaningful impact on our entire school community,' he said. Kluang OCBC branch manager Siau Lee Juan said the bank engages with the communities in which it operates in by assessing their needs and strives to meet them. 'Our aspiration is to be Asia's leading financial services partner for a sustainable future extends beyond our customers. 'We want to be the bank that enables communities around us to realise their aspirations.' 'We trust that the contribution of digital aids and reference books will bolster students' learning process. 'Ultimately, the students will have a better learning environment. 'In the programme, we also advocated on recycling when we had a book drive among bank employees to collect reference books for the school,' said Siau.
The Star
22-06-2025
- Business
- The Star
OCBC backs RM351mil JS-SEZ projects
PETALING JAYA: OCBC Bank (M) Bhd has extended RM351mil in financing to See Hong Chen Group and Exsim to support three strategic real estate developments in the Johor-Singapore Special Economic Zone (JS-SEZ). In a statement, OCBC Bank said the financing supports a partnership between Exsim and See Hong Chen Group for the acquisition of freehold land along Jalan Dato Abdullah Tahir in Johor Baru, earmarked for a mixed development project with a gross development value of approximately RM1.8bil. Financing has also been extended to See Hong Chen Group to support the acquisition of freehold land parcels in Johor Baru.
The Star
22-04-2025
- Business
- The Star
OCBC cuts Malaysia's 2025 GDP forecast to 4.3%
KUALA LUMPUR: OCBC Bank (M) Bhd has revised Malaysia's gross domestic product (GDP) growth for 2025 to 4.3 per cent from 4.5 per cent on a weaker external demand outlook. Chief economist and head of global market research and strategy Selena Ling said the adjustment reflects growing concerns over weakening external demand and persistent global economic headwinds. She said the 4.3 per cent growth projection is based on a 24 per cent reciprocal tariff on Malaysian exports to the US announced in early April. "But, this is the big caveat, there's downside risk. For Malaysia, semiconductors and electronics and electrical (E&E) exports are very important; it's almost 80 per cent of Malaysia's total exports to the US. "So at some point, if the semiconductor tariff does come in, there will be further pressure on growth. Our worst case scenario, we are probably looking somewhere closer to 3.5 per cent,' she told the media during OCBC's 2025 economic outlook today. She said the exemptions for semiconductors and associated products have provided some reprieve because about 46 per cent of Malaysia's exports to the US are still exempt from tariffs based on the latest regulations. This includes E&E appliances products, and encompasses electronic integrated circuits, photovoltaic cells, communication apparatus and automatic data processing machines. More importantly, the US Trump administration has not ruled out the imposition of a semiconductor tariff, which will impact the economy, she said. Ling noted that Malaysia's 24 per cent reciprocal tariff rate is lower than Vietnam's 46 per cent, Cambodia's 49 per cent, Thailand's 37 per cent and Laos' 48 per cent. This allows it to maintain its relative competitiveness for companies geared towards exporting to the US. On overnight policy rate (OPR), Ling said Bank Negara Malaysia (BNM) may focus more on supporting economic growth if global and domestic conditions weaken and may pivot towards monetary easing if growth risks become more pronounced. "We expect rate cuts to come in 2026 to the tune of 50 basis points, but could come earlier if growth risks become more evident sooner,' she said. Malaysia's medium-term outlook remains supported by policy initiatives such as the New Industrial Master Plan 2030, National Energy Transition Roadmap, National Semiconductor Strategy, and the Johor-Singapore Special Economic Zone, she said. "These initiatives are crucial in boosting potential growth, enhancing competitiveness, and building economic resilience,' Ling said. Short-term pressures on the ringgit are expected to persist but Malaysia's economic fundamentals and prospects for a softer US dollar could offer support to the local currency in the medium term, she said. - Bernama
