Malaysian banks hopeful of double digit loan growth
Standard Chartered Bank Malaysia projects retail loan growth at single digit; however, there are other growth triggers for corporate loan growth.
“Bank Negara's new guidelines have some impact as we are seeing a general slowdown in retail loans,'' said Tiew Siew Chuen, country head of consumer banking, Standard Chartered Bank Malaysia. “However, the Economic Transformation Programme continues to be a positive trigger to the sector.''
Standard Chartered registered loan growth of 13.5% year-on-year between June 2010 and June 2011.
“We expect the small and medium enterprises sector to capitalise on the ETP and sustain domestic demand. If economic indicators remain favourable, we forecast double-digit growth for our SME sector,'' she told StarBiz.
The Public Bank group expects its loan growth rate to sustain at a double-digit low teens, with accomodative interest rates and implementation of projects under the ETP supporting the demand for loans.
“The group is confident it can achieve its loan growth target based on its competitive pricing, fast turnaround time for loan approvals and disbursement, loyal customer base and wide branch network,'' said chairman Tan Sri Teh Hong Piow in an email reply.
Last year, the Public Bank group grew its total gross loans by 13.5% to RM177.7bil with domestic loan growth stronger at 14.1% compared with industry growth rate of 13.6%.
Loans to the SME sector grew by 13.8%.
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