Triple whammy for Maybank
Doreenn Leong | 08 Mar 2019 00:30
What do troubled Sapura Energy Bhd, Scomi Group Bhd and Singa-pore’s Hyflux Ltd have in common? Well, apart from being in a dire financial situation, these listed companies have Malayan Banking Bhd (Maybank) as their lender.
While it may be normal for such a huge banking group to have exposure in these companies, these high-profile cases have raised eyebrows among investors despite the bank posting a record profit recently. Maybank’s exposure to the three beleaguered companies run into billions of ringgit.
For one, Maybank’s holding company Permodalan Nasional Bhd (PNB) came under scrutiny when it was accused of throwing good money after bad by its decision to support a cash call by Sapura Energy in January on the notion that Maybank was one of the creditors of the loss-making oil and gas outfit.
A circular to Sapura Energy shareholders says the loans that Maybank has extended to the company were equivalent to 6.2% of the banking group’s net assets. Based on the bank’s net assets as of Sept 30, 2018 of RM75.16 bil, Maybank’s loans to Sapura Energy works out to be around RM4.6 bil.
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