loan growth


Wall Street falls as bank stocks, Syria conflict weigh

NEW YORK, April 14 — Financial stocks led a drop on Wall Street yesterday as results from big banks failed to enthuse and fear of broader conflict in Syria further unnerved investors. The S&P banks index fell 2.6 per cent and the broader S&P…

CIMB Group to reap turnaround benefits, says HLIB Research


KUALA LUMPUR (April 12): CIMB Group Holdings Bhd’s financials are expected to improve in FY18 after sequential improvement in its quarterly earnings last year, according to Hong Leong IB Research (HLIB). In a report today, HLIB maintained its “buy” rating on CIMB at RM7.20 with an unchanged target price of RM7.90 and said there were no changes to its forecast. “We are optimistic that CIMB is poised to post another round of better performance in FY18 (although management’s guidance was somewhat conservative, in our view), benefiting from the tail endRead More

Malaysia can be Islamic fintech leader, says Fitch Group unit

KUALA LUMPUR, April 5 ― Malaysia has the potential to be a world leader in Islamic financial technology (fintech), according to research agency BMI. The Fitch Group unit said further developments from the government, the central bank and…

Banking sector on track to meet 5% loan growth

PETALING JAYA: The banking sector is on track to meet the projected 5% loan growth in 2018 on the back of a 5.5% gross domestic product (GDP) growth, said AmInvestment Bank.

“February 2018 saw household loan growth rising to 5.6% year-on-year versus 5.3% year-on-year in January 2018. The improvement was contributed by a stronger pace of loans for purchase of securities, personal loans and credit cards. Mortgage loan growth continued to be stable,” it said in its report today.

Non-household loan growth climbed to 3.1% year-on-year from 2.7% year-on-year in the preceding month. Growth in working capital loans was stable at 0.7% year-on-year while that for construction purposes surged to 7.9% year-on-year.

Year-to-date, industry loan growth was 4.5% annualised, boosted by improvements in both household and non-household loans growth.

The growth of industry loan applications declined to 5.8% year-on-year compared with 25.5% in January 2018. Growth in household and non-household loan applications were slower at 4.6% year-on-year and 7.2% year-on-year respectively.

“We believe that the decline was contributed by the shorter month in February which included a festive season. By sector, the decline in growth of loan approvals was mainly contributed by slower approvals of loans to the manufacturing, utilities, wholesale and retail trade, restaurants and hotels, finance, insurance and business activities as well as the household sectors,” said AmInvestment Bank.

The banking sector deposits’ growth slipped to 4.2% year-on-year, down from 4.4% year-on-year in January 2018. Growth in individual deposits gained traction to 3.2% year-on-year but was dampened by a slower growth in business enterprise deposits of 8.9% year-on-year. Loan-to-fund ratio and loan-to-fund and equity ratio remained stable at 83.5% and 72.9% respectively while industry CASA growth continued to slow down for the second consecutive month to 6.3% year-on-year compared with 8.5% in January 2018 and 9.4% in December 2017.

Following the Overnight Policy Rate (OPR) hike of 25bps in January 2018, the banking sector’s weighted average lending rate and base rate for commercial banks continued to rise to 5.41% and 3.89% respectively in February 2018.

BIMB’s insurance earnings likely to be strong — Analysts

KUCHING: BIMB Holdings Bhd’s (BIMB) earnings from its insurance subsidiary, Syarikat Takaful Malaysia Bhd (Syarikat Takaful), is likely to be strong due to its strategic tie-ups with banks for bancatakaful. However, analysts have noted that its loans growth has been soft with a slow momentum for personal financing while mortgage loan growth has been decent. […]

RHB Bank eyes 11 pct loan growth for 2018 retail segment

KUALA LUMPUR: RHB Bank Bhd is eyeing a 11 per cent loan growth for its retail segment this year, an increase over the 8.9 per cent posted in 2017. Vice president/acting head of retail banking, Nazri Othman said it was an aggressive target which needed to be achieved to meet the bank’s five-year strategic plan […]

RHB Bank eyes 11pc loan growth for 2018 retail segment

KUALA LUMPUR, March 30 — RHB Bank Bhd is eyeing a 11 per cent loan growth for its retail segment this year, an increase over the 8.9 per cent posted in 2017. Vice President/ Acting Head of Retail Banking Nazri Othman said it was an aggressive…

Malaysia’s banking sector to benefit from stronger macroeconomic conditions in 2018, says Moody’s

KUALA LUMPUR, March 21 — Malaysian banks’ asset quality and profitability generally improved in 2017 and this trend is likely to continue into 2018 ,says international rating agency Moody’s Investors Service today. The agency noted that…

Ten years after JPMorgan-Bear Stearns deal banks may have already seen biggest gains

NEW YORK, March 17 ― Ten years after JPMorgan bought failing investment bank Bear Stearns, one of the first big harbingers of the financial crisis, investor views on US banks are significantly brighter, although the sector may have already put…