KUALA LUMPUR, July 28 — CIMB Group Holdings Bhd has forecast its loan growth to remain at between six and seven per cent this year, in line with the industry’s growth projection.
Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said for Malaysia specifically, the bank’s target remained on track.
“Based on what we are observing now and if the current economic growth is at where it is today, CIMB should be able to meet the target,” he told reporters after delivering the second keynote address at the Economic and Leadership Forum 2018 here today.
Tengku Zafrul also said the re-introduction of the Sales and Services Tax (SST) in September would not have a significant impact on CIMB’s loan growth as consumption continued to remain strong.
On the group’s Target 2018 (T18) set of initiatives, which focused on getting the bank’s cost structure right and strengthening the organisation culture, he expressed optimism that CIMB would be able to meet the targets this year.
“We are seeing good improvements in Indonesia and Thailand, while Malaysia and Singapore continue to remain strong,” he noted.
CIMB launched the four-year T18 in February 2015. Its targets include achieving a return on equity of more than 10.5 to 11 per cent and a reduction in the cost-to-income ratio to below 50 per cent.
“The targets will be achieved if everything stays the same, excluding factors such as the escalating US-China trade war and US interest rate hike which will impact the region,” he said.
Meanwhile, Tengku Zafrul denied having been approached by government representatives to take over as Khazanah Nasional Bhd Managing Director.
“My immediate-term goal is to make sure that I continue delivering the targets to grow CIMB,” he added.
The sovereign wealth fund confirmed on Thursday that all its board members, including Managing Director Tan Sri Azman Mokhtar, had submitted undated resignation letters. — Bernama
