Maybank to increase mortgage, SME loans in three years

Maybank to increase mortgage, SME loans in three years

KUALA LUMPUR: Malayan Banking Bhd (Maybank) targets to increase its loan disbursement for both mortgages and small and medium enterprises (SMEs) to RM35 billion and RM50 billion, respectively, in the next three years, said group president and chief executive officer Datuk Abdul Farid Alias.

He said the bank had disbursed about RM12.2 billion in mortgage loans last year and planned to grow this to about RM50 billion in the next three years.

“Our approval rate for mortgage as of March (this year) is at 80 per cent compared to the industry’s approval rate at 70 per cent.

“So, the industry has been supporting the borrowers, especially those who need to find a home,” he told reporters after the company’s annual general meeting here today.

As at Dec 31, 2018, Maybank’s mortgage scheme stood at RM87.5 billion.

Abdul Farid pointed out that the bank’s small and medium enterprises (SME) segment lending was a combination of business banking and retail SME.

Currently, business banking stands at RM24 billion while retail SME amounts to RM17.1 billion.

Meanwhile, Abdul Farid said Maybank would drive positive jaws (jaws ratio indicates an entity’s income growth rate exceeds expenses growth rate) across all business segments to achieve a cost-to-income ratio of around 47 per cent, while emphasising on upskilling employees for the digital economy.

At the same time, he added that Maybank would maintain its robust risk management practices and ongoing recovery efforts to ensure that asset quality remains sound.

— BERNAMA

GLOBAL AGRITECH SUMMIT

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