Ambank: Banking Industry Likely To Improve In 2nd Half Of 2017

KUALA LUMPUR, Dec 14 (Bernama) -- Malaysia's banking industry is expected to improve in the second half of next year, picking up from the negative sentiment that is expected to prevail in the first half of 2017, said AMMB Holdings Bhd's Chief Executive Officer, Sulaiman Mohd Tahir. Sulaiman said the global uncertainties, triggered by issues such as 'Britain Exit' (Brexit) and Italy referendums, had caused investors to remain unsure on what will be going on next. "When there are uncertainties, people will pull back. When the investors are clearer on the outcome of the Brexit referendum and what is happening in the European Union, hopefully people will be in a better position to invest, whether in Malaysia or other countries," he said. Sulaiman said to reporters after the launch of #JoyFortuneLove with AmBank Cards here Wednesday. He said AmBank was expected to record a better loan growth of between four and five per cent for the financial year ending March 31, 3017, doubled from that recorded in last financial year. "This will be helped by the better demand from the infrastructure projects. "The Mass Rapid Transit, highways and the high-speed rail projects will boost the local demand and create the spinoff effects to the small- and medium-sized enterprises (SMEs). "The demand would mainly be internally-driven and the internal expenditure allocated by the government over the next one year," he said. On the SME loans, Sulaiman said, the segment would grow by between seven and eight per cent this year, compared with 13-14 per cent last year. "Over the last two years, SME loans rose by about 13.9 per cent, This year we expected a lower growth due to weaker economic situation but still better than that recorded by the large corporates. "Overall, the banking industry's loan growth is expected to register about five per cent," he said. On the credit card segment, the group's Retail Banking Managing Director, Jade Lee, said the bank aimed to sign up 50,000 net new credit card holders annually. She said AmBank has over 400,000 credit card holders as of Nov 30, 2016, with an average spending of US$1,573 (RM7,000) per card. (US$1 = RM4.44) "Our new card holders rose more than 100 per cent, way above the industry's performance which currently recorded single-digit growth," she said. The group's #JoyFortuneLove campaign, which started from Nov 1, 2016 to March 31, 2017, aims to reward its loyal customers. The campaign provides a chance for two credit card holders to win an Audi TT 2.0 TFSI each as the grand prize, with every US$11 (RM50) spent in a single receipt using their AmBank credit card. -- BERNAMA