Public Bank aims for 8, 9 pct loans growth for 2016

KUALA LUMPUR: Public Bank Bhd is aiming for a loans growth of between eight and nine per cent for its financial year ending Dec 31, 2016, says Managing Director Tan Sri Tay Ah Lek.

He said the banking group was also targeting deposits growth of between seven and eight per cent for 2016, to be driven by an organic growth in its core retail banking and business financing.

Tay said the industry’s net interest margin was expected to be squeezed this year due to competition and cost of deposits which were trending upwards.

“Public Bank group will focus on optimal productivity and cost efficiency,” he told reporters at the bank’s 50th annual general meeting yesterday, which saw a record attendance of 6,366 shareholders.

Despite the challenging operating environment, Tay said the group’s loans and deposits grew a healthy 11.6 per cent and 8.9 per cent, respectively.

Moving forward, he said the bank was confident of achieving sustainable growth for 2016 while maintain its prudent credit policies and uphold strong corporate governance.

“The fee-based income will also continue to be the group’s focus,” he said. For 2016, Tay said the group’s gross impaired loans ratio was expected to be contained below one per cent.

“The group’s asset quality remains the best in the banking industry. Gross impaired loans ratio remained low at 0.5 per cent in 2015, about one-third of the banking industry’s gross impaired loans ratio of 1.6 per cent,” he said.

Tay also said the group’s loans growth would continue to be propelled by financing for the purchase of residential properties and passenger vehicles, as well as, commercial lending for small and medium enterprises, purchase of commercial properties and working capital.

“As for housing loan borrowers, most of them were occupying their properties and they were not investors. Thus, the bank’s loans portfolio is safe,” he added. — Bernama