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CIMB to achieve 6 pct loan growth for FY18
Last update: 26/04/2018

KUALA LUMPUR, April 26 (Bernama) -- CIMB Bank Bhd is confident of achieving its six per cent loan growth target for the financial year ending Dec 31, 2018 (FY18), outpacing the four to five per cent growth anticipated for the industry.

Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said the bank would be able to meet the target as growth had been on track over the first four months.

"The loan growth in Thailand and Indonesia businesses are also expected to improve by about five per cent this year.

"As for the deposit growth, it is also expected to move in tandem with loan growth and increase by about six per cent this year," he told a media briefing after the company's annual general meeting here, today.

According to Group Chairman Datuk Seri Nazir Razak, the growth would be driven by all its business segments, particularly from consumer banking and wholesale on the corporate side.

Asked on CIMB's zero-fee interbank fund transfer's impact on the its non-interest income (NII), Tengku Zafrul said the impact would be very small, but would benefit customers and support the country's cashless society agenda.

"This is a very meaningful move, and hopefully, we can set an example for other banks to follow," he said.

Yesterday, CIMB offered its zero-fee online fund transfers, regardless of transaction amount, via CIMB Clicks (www.cimbclicks.com.my) and CIMB EVA mobile banking apps to customers, as part of efforts to drive the usage of digital payments.

The bank recorded 155 million online transactions via CIMB Clicks last year, while the usage of cheques dropped by 17.5 per cent year-on-year.

Meanwhile, Tengku Zafrul anticipated the bank's cost-to-income ratio to fall to less than 50 per cent this year from 51.8 per cent in 2017, in line with the target set under its Target 18 initiative.

On the impact of the new financial instrument standard, Malaysian Financial Reporting Standards 9 which came into effect in January this year, he said it would be around 50 to 70-basis points to the (capital) growth.

"It is a small impact to capital, mainly coming from Indonesia," added Tengku Zafrul.

At the close today, CIMB's share price went up three sen to finish at RM7.20 with 9.34 million shares traded.

-- BERNAMA  

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