RHB BANK UPBEAT ON LOAN GROWTH
Group sees 4-5pc expansion on back of solid private investment, consumption
RHB Bank Bhd, Malaysia’s fourthlargest bank by asset size, sees a more positive loan growth this year and next year despite the slower economic growth environment.
Bank Negara Malaysia has lowered the country’s growth forecast to five per cent this year, mainly due to the trade war between China and the United States as well as Malaysia’s lower public expenditure.
RHB Bank, however, expects its loan business, the main revenue driver, to grow steadily on strong domestic demand.
Group managing director Datuk Khairusexpects saleh Ramli its loans segment to grow four to five per cent this year, a more optimistic target than the previous three to four per cent.
Loan growth next year would be about the same, too, he said.
“We have been here for 100 years and have gone through many crises. So we will adjust. “We are still seeing loan growth this year and next year. There will be opportunities for growth on the back of solid private investment and consumption,” Khairussaleh told NST Business. He said more than 70 per cent of its total income came from loans and interest-bearing assets.
It was reported that the bank hoped to achieve a record 2018 financial year, driven by growth in various business segments. Khairussaleh said he was optimistic the government would continue to support private investment in driving growth.
“This is where banks like us can be more active in helping them and boosting our own growth.”
On the 2019 Budget, Khairussaleh expects the government to focus spending on small and medium enterprises, and middleand low-income earners.
“I think it will be more about getting the majority of the population to participate in economic activities,” he added.