Loan-to-deposit ratios up for all Malaysian banks but one in 4Q16

Average LDR for banks jumped to 93.5%.

According to Maybank Kim Eng, with deposit growth trailing loan growth, the loan/deposit ratios (LDR) rose across the board for all banks but AMMB. The average LDR for banks in their coverage jumped to 93.5% end-Dec 2016 from 90.5% end-Sep 2016.

AMMB’s LDR remained elevated above 100% in 4Q16 while HL Bank and AFG were the only banks with ratios below 90%. Maybank’s domestic LDR was a lower 91%, and was 85% in Singapore and 105% in Indonesia. 

Here's more from Maybank Kim Eng:

Two other liquidity ratios that BNM monitors are the loan/fund ratio (LFR) and the loan/fund and equity ratio (LFER). The denominator for the LFR comprises customer deposits and all debt instruments (including subordinated debt, debt certificates/sukuk issued, commercial paper and structured notes). The denominator for the LFER adds on ordinary and preferred shares, share premium and retained earnings.

We estimate the average gross LFR for the seven banks to have risen to 86.5% end-Dec 2016 from 83.9% end-Sep. Of the seven banks, AMMB has the largest percentage of borrowings to total funds at 12.5%, followed by Maybank (9.9%) and CIMB (8.3%).