Public Bank reports 7.5% loan growth in 2016

Domestic loan growth was at 7.2%.

According to Maybank Kim Eng, Public Bank reported group loan growth of 7.5% YoY in 2016, which is below management’s initial target of 8-9%. Domestic loan growth came in at 7.2% YoY, which still compares favourably against the industry’s 5.3%.

"Domestic housing loans rose 11% YoY while commercial property lending increased 9% YoY. This was however offset by a 1% YoY decline in auto financing. Overseas lending saw loans in Cambodia rise 9% YoY while loans in Hong Kong increased a marginal 3% YoY. Management expects loan growth to moderate further in 2017 and targets growth of 6-7%. We have assumed loan growth of 6.5%."