Latest news with #RM711mil
The Star
30-06-2025
- Business
- The Star
Digital banks grow deposits
PETALING JAYA: Three out of the five licensed digital banks which have begun operations are showing encouraging numbers, but they are unlikely to pose near to medium-term threats to conventional banks, says UOB Kay Hian (UOBKH) Research. The three digital banks which are operational are GXBank, Boost Bank and AEON Bank, while Ryt Bank and KAF Digital Bank remain in the pilot phase and are currently undergoing controlled testing with selected users to fine-tune their platforms ahead of a broader public rollout. There has been a rapid build-up in deposit taking with GX Bank leading in both assets and customer deposits. According to UOBKH Research, as of September 2024, GXBank reported RM2.4bil in total assets and RM2.2bil in deposits. AEON Bank recorded RM711mil in assets and RM339mil in deposits as at November last year, while Boost Bank, which had commenced operations in late first half of 2024, posted RM819mil in assets and RM573mil in deposits as of March 2025. GXBank's rapid deposit traction was driven by aggressive promotional campaigns and market leading saving account deposit rates of up to 3%. However, these initiatives have since been scaled back as the bank transitions into its second year. AEON Bank and Boost Bank similarly launched high-yield savings accounts, although Boost Bank has adopted a more disciplined strategy, maintaining a lower cost of funds at 1.7%, compared with 3% for its peers. 'Despite these encouraging numbers, the combined asset base of all three operational digital banks remains small, collectively accounting for less than 1% of the total banking sector's RM3.7 trillion in assets as of end-April 2025. 'Even at the regulatory cap of RM3bil per digital bank over their first three to five years, the cumulative RM15bil ceiling represents just 0.4% of the industry's current total assets,' said UOBKH Research in report. It noted that the three digital banks remain loss-making and they had guided it could take more than three years on average to break even. At the same time, established banks continue to advance their own digital agendas and retain broader product capabilities and distribution networks. 'Amid external uncertainties, we favour banks with attractive valuations, high provision buffers and capital management potential for added defensiveness. Our top picks are Hong Leong Bank Bhd , Public Bank Bhd and AMMB Holdings Bhd .' It said AMMB stands out for its capital management, supported by strong CET1 ratios, while Hong Leong Bank and Public Bank offer defensiveness in the current volatile environment, trading below mean price-to-book and backed by their solid provision buffers.
The Star
12-05-2025
- Business
- The Star
United Plantations set on remaining competitive
PETALING JAYA: United Plantations Bhd will remain alert and adapt to the changing environment for this year. Chairman Datuk Mohamad Nasir Abdul Latif believes two key themes will likely shape the global economy in 2025, namely the normalisation of inflation rates and the loosening of monetary policy. Both of these, he said, should offer some support to gross domestic product growth. 'Nevertheless, central banks remain cautious about loosening policies too rapidly as inflation is stickier than expected, which could indicate that rates may stay higher for longer,' he said in the company's annual report. 'Furthermore, the escalating conflicts in the Middle East and Ukraine as well as the slowdown in the Chinese economy may provide setbacks in global trade, which in turn would impact the supply and demand equation for vegetable oils, hereunder palm oil,' Mohamad Nasir added. He noted that the recent price increase in vegetable oils should not be taken for granted. 'In the United Plantations Group we will therefore continue to focus on raising productivity and cost efficiencies to remain competitive when prices head south again. 'With the board and management's focus I am confident that we will remain alert and adapt to the changing environment by having an open mind, remaining agile and by having the courage to innovate and stimulate progress whilst ultimately preserving our core values,' he said. Reflecting on the past year, Mohamad Nasir said the global economy led by the United States has been resilient amidst an environment of high interest rates introduced to curb inflation. Commenting on the group's performance, Mohamad Nasir said United Plantations has remained resilient amidst the global uncertainty and achieved a new record after-tax profit of RM719mil for the financial year 2024. 'This represents an increase of RM8mil equal to a 1.1% improvement when compared with the result of RM711mil in 2023. 'This record result was primarily driven by the higher commodity prices achieved by United Plantations, along with the continued efforts of our estates to optimise yields wherever possible using our in-house high-yielding planting materials and by further strengthening and implementing our proven management practices.' Separately, he said the group's plantations in Indonesia were significantly compounded by weather conditions during the year, where rainfall on most of its estates was 50% to 60% higher than the norm. 'This and others resulted in our production declining 11% in 2024 compared to 2023, thus impacting the overall group production for the year.' He added that the group's downstream refinery sector also encountered challenges in 2024. This was mainly in the form of increased competition from Indonesia and margin pressure. 'Even so, we achieved a commendable result, driven by our unwavering commitment and focus on high quality and sustainability, which has ensured stability and sustained partnerships with both local and global customers,' he said.
