Malaysian banking sector anticipate loans growth

Banking statistics for December 2010 was seen by analysts as a good round-up for 2010’s sector loans growth.

But they note that loans growth will also be dampened by the impending SRR hike and imposition of macro-prudential lending measures as guided by Bank Negara Malaysia in its latest monetary policy statement on January 27.

Analysts from HwangDBS Research highlighted that loans grew by 12.8 per cent year-on-year in 2010, supported by both the business and retail, which increased by 11.5 per cent, segments.

“Within the retail segment, mortgages, hire purchase and credit card loans grew by 13.2 per cent, 7.7 per cent and 14.2 per cent respectively,” added analysts Lim Sue Lin and Hon Seow Mee.

Despite banks adopting the FRS139 last year, both analysts affirmed that asset quality remained robust with a gross non-performing loan  ratio at 3.2 per cent.