SINGAPORE (Dec 11): Malaysia’s top six banks by assets turned in third-quarter earnings that were largely within analysts’ expectations, but loan growth fell short, pointing to the likelihood that several are likely to miss or cut their full-year lending targets.
Malayan Banking (Maybank) recently said its group loan growth is likely to be around 3% for the full year compared with expectations three months earlier of 6% to 7%. CIMB Group Holdings, too, is unlikely to meet its loan growth target of 7% that was set earlier this year.
“With year-to-date loan growth only at 1%, it will clearly fall short of the 7% target set earlier this year,” says Lim Sue Lin of AllianceDBS Research. While she expects loans to pick up slightly in the final quarter, she nevertheless cut her 2017 forecast for CIMB to just 3% from 5% earlier.