CIMB eyes 12% loans growth in 2010

Mortgage sales, personal loans and credit card businesses seen as drivers for achieving target.

CIMB banking group is maintaining a loans growth target of 12% this year despite a higher interest rate environment.

According to group chief executive officer Datuk Seri Nazir Razak, the estimated loans growth for the whole group is 12% with the Malaysian operations targeting a 10% loans growth and a higher percentage for its overseas operations.

Last year, CIMB group achieved a loans growth of some 11% versus its target of 8%.

"I don’t think the higher interest rate environment will impact loans growth. What is happening is an uptick in interest rates to normal levels. It is still conducive to loan demand and still financially reasonable for businesses to borrow," he said.

Nazir said the group experienced a slowdown in loans growth in the small- and medium-scale enterprise segment last year but with a more favourable business environment, "loan demand from the segment will be stronger."

The group’s loans growth is also expected to be driven by mortgage sales, personal loans and the credit card businesses.

View the full story in the Star.