Stocks to Watch. Maybank Denies Trouble on Genting HK
Maybank has dismissed allegations that it will face major financial trouble on exposure to Genting Hong Kong Ltd as “baseless”.
“With regard to queries on recent news articles suggesting that Maybank is one of the three Malaysian banks that will face major financial trouble owing to exposure to Genting Hong Kong, Maybank would like to state vehemently that these allegations are baseless,” it said in a written reply to a query on the issue.
“Maybank would like to re-enforce that it observes strict accounting treatment related to provisioning and impairment of loans, as per International Financial Reporting Standards (IFRS) and Malaysian Financial Reporting Standards (MFRS) requirements, and the accounting treatment is also subject to comprehensive reviews by our external auditors and regulators,” a statement says.
Maybank says it has “a rigorous asset quality monitoring process.” Any vulnerable borrowers are identified and managed appropriately from the beginning of any potential asset quality weakness.
“As such, loan provisioning will be proactively made from the beginning of any such asset quality weakness based on the borrower’s risk rating with the bank.
“Therefore, Maybank would like to state that our current net credit charge of guidance for loan provisioning remains unchanged. We can confirm that our financial position remains strong,” it says.
Genting Hong Kong filed a winding up its business in one of the biggest stumbles by a cruise operator since the Covid-19 pandemic began, say news sources.
The company is on the verge of liquidation, more than two years into the global health crisis. Authorities in the United States are preparing to seize a Genting ship in Miami due to unpaid fuel bills, and online bookings for some cruises have been suspended. In Hong Kong, the company’s shares have been halted.
Days after the company filed to wind up its business, chairman and CEO Tan Sri Lim Kok Thay resigned.
On Sunday, the Singapore Straits Times reported that three Malaysian bank’s profits are set to take a major hit as trouble looms over cruise operator Genting Hong Kong. It also says Genting HK is a major Asian corporate casualty of the Covid-19 pandemic.
Straits Times says how Malayan Banking (Maybank), CIMB and RHB — among some the chief unsecured creditors of Genting Hong Kong, with a combined exposure of US$600 million (RM2.5 billion) — decide to move forward in dealing with the group would determine if the cruise operator sinks or swims.