Malaysian banks' loan growth 'significantly slower'

Growth slowed to 2.3% as at end-September 2016.

Maybank Kim Eng notes that cumulative gross loan growth for the seven banks saw a significant slowdown to 2.3% YoY end-Sep 2016 from 5.8% YoY end-Jun 2016. The numbers were still weak, even after stripping out the forex impact. CIMB’s 3Q16 loan growth ex-forex was also slower at 2.2% YoY and this compares against 3.9% YoY in 2Q16. Maybank’s 3Q16 loan growth ex-forex was flat YoY versus 1.6% in 2Q16.

Still leading the pack but at a noticeably slower pace, is Public Bank with loan growth of 7.5% YoY, while Maybank’s group loans contracted 0.7% YoY due mainly to chunky corporate loan repayments across its key markets.

Here's more from Maybank Kim Eng:

On a QoQ basis, cumulative loans growth was 1.7% versus 1.9% end-Jun 2016, with slightly better momentum for Maybank, AMMB and AFG – the latter saw its SME loans segment resume growth after a contraction the previous quarter.

Cumulative domestic loan growth for the seven banks eased to 4.7% YoY end-Sep 2016 from 5.6% YoY end-Jun 2016. This was slightly faster than the industry’s loan growth of 4.2% YoY.

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