Broad money up in April

Net financing to the private sector grows at a slower pace

KUALA LUMPUR: Private sector liquidity, as measured by broad money (M3), grew at a stable annual growth rate of 15% in April on continued credit extension by the banking system, said Bank Negara.

The expansion of M3 was partially mitigated by net foreign outflows during the month, while net financing to the private sector grew at a slower pace in April due to lower net private debt security issuances and the stable rate of increase in outstanding banking system loans, it said.

“Business loans outstanding increased by 11.7% during the month with a higher amount of loans extended to businesses in the real estate, finance insurance and business services, manufacturing and wholesale and retail, restaurants and hotels sectors,” it said.

“While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for purchase of residential and nonresidential properties and passenger cars,” it added.

Meanwhile, the Consumer Price Index (CPI) moderated to 1.9% in April due to lower inflation in the food and non-alcoholic beverages, recreation services, and culture and transport categories.

“Inflation in the food and nonalcoholic beverages category was lower at 2.3% in April due to a decline in the prices of vegetables and meat following improved supply of food items,” Bank Negara said.

“The recreation services, and culture and transport categories registered lower inflation rates as the impact from the increase in satellite television service charges and the larger price adjustment on RON97 petrol in April 2011 tapered off,” it said.

Bank Negara also said the banking system remained well-capitalised with the risk-weighted capital ratio and core capital ratio at 14.5% and 12.9% respectively.

It said the decline in the capital base was due to a scheduled redemption of subordinated debt capital by a bank.

“The level of net impaired loans remained stable at 1.8% of net loans, while the loan-loss coverage remained above 90%,” it said.

The international reserves of Bank Negara stood at RM417.5bil (equivalent to US$136.1bil) as at May 15 which is sufficient to finance 9.3 months of retained imports and is 4.1 times short-term external debt. PETALING JAYA: KPJ Healthcare Bhd’s net profit rose 21.2% to RM33.33mil, or 5.81 sen per share, in the first quarter ended March 31, from RM27.51mil, or 5.09 sen per share, a year earlier.

Its revenue increased by 20% to RM525.62mil from RM437.75mil.

The company declared a 2.5 sen single-tier dividend.

KPJ said that profit before tax increased by 18.5% to RM49.30mil from RM41.55mil a year earlier, in line with the increase in revenue of the hospitals it operates.

“The Malaysian segment revenue for the current financial period has increased by 19% to RM483.9mil compared with RM406mil reported in 2011. The higher revenue reported is due to the increase in revenue of the hospitals in the group,” it said.

KPJ said its Indonesian segment revenue of RM5mil was 165% higher than the RM1.9mil posted a year ago.