CIMB on track to meet 6-7 pct loan growth for FY17

KUALA LUMPUR: CIMB Group Holdings Bhd is on track to meet a full-year loan growth of between six and seven per cent and its other key financial targets for financial year 2017 (FY17) with operations in Malaysia to be the lead driver, said Group chief executive, Tengku Datuk Seri Zafrul Aziz.

He said loan growth across the three segments – consumer, commercial and wholesale banking businesses – were expected to continue in the second half (H2) of the year.

“We are cautiously optimistic in 2H, given the strong gross domestic product (GDP) growth in Malaysia, and Indonesia, and the expected gradual improvement in Singapore and Thailand,” he said at a media conference on the group’s financial results for the first half of 2017 (H1) yesterday.

While the bank’s consumer segment is expected to continue growing, Tengku Zafrul also expected seasonal loan growth from the commercial or corporate banking businesses in H2, based on the pattern in the fourth quarter of FY16 which had shown higher growth.

He added that the countries in which CIMB operated in had signalled increased regional activities and improved capital markets.

“Even as we grow in our key markets, we will continue to focus on asset quality across all businesses. We are confident that with the continued embedment of the 5Cs – capital, cost, culture, customer experience and compliance, CIMB is on track to meet its key financial targets for 2017,” he said.

CIMB Group’s operating income in H1 grew 13.9 per cent year-on-year to RM8.69 billion largely driven by a 15.9 per cent growth in noninterest income in line with better capital market activity. — Bernama