KUALA LUMPUR, Aug 30 — Malayan Banking Bhd (Maybank) is optimistic of registering growth for the second half of the year (2H 2023), backed by the stable outlook on the overnight policy rate (OPR), which is likely to be maintained at 3.00 per cent for 2023.

Group president and chief executive officer Datuk Khairusalleh Ramli said although the market tended to be still volatile, with interest rate stability, it would not be overly impacted compared to 1H and it would not impact the borrowers as before.

“Potentially, the outlook is going to be better and, in fact, we may be able to enter back into investment of securities and be able to see certain gains from that with the maintained OPR rate,” he said during the Maybank financial results briefing for 1H 2023 here today.

On loans, he said the bank would continue to see loan growth in 2H, lifted by the growth in the services sector and the opening up of the tourism sector, although the reopening of China did not really help as anticipated.

“At the moment, we have loan growth of 5.3 per cent year-on-year, driven by 3.9 per cent loan growth in Malaysia, 2.2 per cent in Indonesia and 8.8 per cent in other markets. Hence, we are confident of achieving five to six per cent loan growth for FY2023,” he said.

He pointed out that the net interest margin (NIM) compression is also expected to stabilise in the 2H following severe compression in the first half of this year.

Maybank’s annualised NIM compression for 1H 2023 was 22 basis points from a year ago on higher funding cost.

“We have seen quite a steep compression in 1H, primarily arising from the competition in funding and deposits and we think that has stabilised and the compression would be less for the remainder of the year,” he said.

Meanwhile, chairman Tan Sri Zamzamzairani Mohd Isa said the bank intends to leverage its strong brand equity, digital capabilities as well as expertise and solid infrastructure to tap into growth opportunities and serve customers better.

“Moving forward, as we strive to realise our regional M25+ aspirations, we will be committed to diligent asset and liability management, prudent credit lending and asset quality practices, disciplined cost management and strong governance,” he added.

Zamzamzairani added that it would be further underpinned by the mission of Humanising Financial Services with the aim to enable continued value creation for all stakeholders. — Bernama