The country’s financial sector remained resilient in the fourth quarter of 2009 with strong capitalisation, improving non-performing loan (NPL) ratio and ample liquidity.Bank Negara Malaysia (BNM) said this in a statement today.
The banking, insurance and takaful sectors recorded improved profitability in the quarter.
This enabled the financial sector to continue supporting financing activity and providing the necessary financial services to the economy, the central bank added.
As at end-December 2009, the risk-weighted capital ratio of the banking system was 14.7 pct while core capital ratio stood at 13.1 pct.
Capital in excess of the minimum regulatory requirement was maintained at more than RM50 billion.
Loan quality remained favourable with the continued downtrend in NPLs, reported BNM.
The net NPL ratio improved to 1.8 pct as at the end of the quarter, with a loan-loss coverage of 95.2 pct.
The banking system recorded a pre-tax profit that totalled RM5.2 billion during the quarter, supported by an increase in fee-based income and higher investment gains, it added.
BNM assured the capital adequacy ratio of the insurance industry remained strong at 230.3 pct (third quarter 2009: 214.7 pct).
Overall profitability of the insurance and takaful sector increased to RM3.7 billion (fourth quarter 2008: RM1.7 billion), driven mainly by improvements in the performance of the equity market and in business conditions.
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