Hong Leong Bank expects to maintain a double-digit growth in loans for 2012 fiscal year, driven by domestic demand from business banking sector as well as fee-based income.
Group managing director/chief executive, Yvonne Chia, said the growth, although projected to be lower than last year's 12.8 per cent, was still encouraging given the current global economic situation.
"In the last two months, the drawdown of banking loans has been more from the business segment. So we expect that momentum to go on," she told reporters at a briefing to announce the bank's second quarter results here today. To date, loans growth was at 10 per cent.
Chia said the bank is also eyeing to tap into new segments such as the growing Islamic segment, the tech-savvy younger generation segment as well as the bigger opportunity offered by the growing intra-trade between Asean and China.
The bank is also focusing on integrating its information technology (IT) platforms, internet and mobility to add more applications that could enhance its services.
"The IT infrastructure is in place...We just need to further add value to it," she said.
Asked on the impact of the tighter regulation for new loans implemented by Bank Negara Malaysia, she said the new rule is not expected to affect the bank's loans growth.
She said loan consumption in Malaysia was still considered strong, despite the recent drop in loans which was seen as seasonal due to festive celebration.
"We just have to continue to run the business like we used to do. At the end of the day, it is about how well we know our customers," Chia said.
She also added that the bank is striving towards higher contribution from business banking compared to the current situation, where consumer banking accounts for some 70 per cent of its loan applications.
Meanwhile, on return on equity, she said the bank is on track to achieve its 17 per cent target.
She also said the bank would need to enhance its fee-based income by leveraging on the merged Hong Leong Bank-EON Bank Group's distribution and enlarged customers base, improving customer flow for transaction and remittance businesses, foreign exchange flow, trade finance as well as adding more regional asset. -- Bernama
Group managing director/chief executive, Yvonne Chia, said the growth, although projected to be lower than last year's 12.8 per cent, was still encouraging given the current global economic situation.
"In the last two months, the drawdown of banking loans has been more from the business segment. So we expect that momentum to go on," she told reporters at a briefing to announce the bank's second quarter results here today. To date, loans growth was at 10 per cent.
Chia said the bank is also eyeing to tap into new segments such as the growing Islamic segment, the tech-savvy younger generation segment as well as the bigger opportunity offered by the growing intra-trade between Asean and China.
The bank is also focusing on integrating its information technology (IT) platforms, internet and mobility to add more applications that could enhance its services.
"The IT infrastructure is in place...We just need to further add value to it," she said.
Asked on the impact of the tighter regulation for new loans implemented by Bank Negara Malaysia, she said the new rule is not expected to affect the bank's loans growth.
She said loan consumption in Malaysia was still considered strong, despite the recent drop in loans which was seen as seasonal due to festive celebration.
"We just have to continue to run the business like we used to do. At the end of the day, it is about how well we know our customers," Chia said.
She also added that the bank is striving towards higher contribution from business banking compared to the current situation, where consumer banking accounts for some 70 per cent of its loan applications.
Meanwhile, on return on equity, she said the bank is on track to achieve its 17 per cent target.
She also said the bank would need to enhance its fee-based income by leveraging on the merged Hong Leong Bank-EON Bank Group's distribution and enlarged customers base, improving customer flow for transaction and remittance businesses, foreign exchange flow, trade finance as well as adding more regional asset. -- Bernama
