AFFIN BANK TARGETS 4PC LOAN GROWTH
Consumer, SME portfolios to be primary drivers
AFFIN Bank Bhd is targeting a three to four per cent loan growth this year, driven by its consumer and small and medium enterprise (SME) portfolios.
Group chief executive officer Kamarul Ariffin Mohd Jamil said the conservative target was in line with the current challenging market environment, with gross domestic product expected to grow
between 4.3 and 4.8 per cent.
Besides, the bank is allocating RM150 million in capital expenditure this year for the development of its information technology infrastructure.
Last year, Affin Bank disbursed RM45.7 billion in loans across all of its portfolios.
“The primary drivers for growth this year will be consumer and SMEs. At the moment, contribution from our consumer portfolio is at 50 per cent and SME is at eight per cent, with the balance from corporate,” said Kamarul Ariffin after Affin Bank’s annual general meeting, here, yesterday.
He said the group planned to grow its SME portfolio to 20 per cent in the next three to five years.
Kamarul said in order to achieve this, the bank had put together a team and set up business centres nationwide to asses the market better and develop its SME portfolio.
“We now have business centres all over the country to help us do the market research.
“Last year, Affin Bank’s SME portfolio recorded quite commendable growth, both in assets and liabilities,” he said.