Rising Credit Costs Likely To Be An Earnings Risk For Malaysian Banks: Fitch

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Tuesday, a report by Fitch Ratings said although the loan quality of Malaysian banks are expected to deteriorate for most of this year, the corresponding rise in credit costs is expected to be largely an earnings risk for the banks with minimal risk of capital impairment. This underpins the stable outlook on the ratings of the country's banks, the firm said.

Fitch noted that the country's banks had been relatively contained, with profitability moderating in the second half of 2008 and in the first half of 2009 and a small rise in the non-performing loans to date.

(Market News Provided by RTTNews)