Malaysia's slowing household loan growth drags 2016 industry forecast

Loan growth is forecast at 6.5%.

Maybank Kim Eng maintains its industry loan growth forecast of 6.5% for 2016, which is premised on a further slowdown in household loan growth to 6.1% and non-HH loan growth to 7.0%.

Here's more from Maybank Kim Eng:

Industry loan growth picked up pace in the final month of 2015 to end the year at 7.9% (slowing from 9.3% in 2014), in line with our forecast of 7.8%. The industry’s loan/deposit ratio (LDR) was restated to exclude financing funded by Investment Accounts and rose marginally to 88.7% from 88.3% end-Nov 2015 as total deposit growth slowed further in Dec 2015 to just 1.8% YoY from 3.2% YoY end-Nov 2015.

Foreign currency deposits jumped 45% YoY in Dec 2015, making up 8% of total deposits. Absolute NPLs rose at a slightly faster pace of 4.2% YoY in Dec 2015 (2.1% YoY end-Nov 2015) but the industry’s gross NPL ratio was stable at 1.60%.

Loan loss coverage slipped to 96.2% from 97.2% end-Nov 2015. Positively, PDS issuances jumped in Dec 2015 to MYR23.9b from MYR7.0b in Nov. As such, 2015 caught up to 2014 with total PDS issuances of MYR85.1b.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit