Maybank Singapore cashes in on loans growth for 3Q

Gross loans in Singapore operations now constitute 19.3% of the bank's total loans globally, compared with 19% in September 2009.

In a statement, Maybank said its Singapore operations recorded a 5.2% growth in revenue compared to the previous corresponding quarter. Loans growth was spearheaded mainly by financing for the commercial sector which was underpinned by the strong economic growth in the island. The mortgage loan portfolio however, registered marginal decline as the consumer banking segment within Singapore’s financial services industry was more subdued.

Notwithstanding this, the Singapore operations’ loan portfolio was fairly well diversified among automobile, housing, general commerce and building & construction while asset quality remained excellent with the net impaired loans ratio at 0.30% in September 2010.

Dato' Sri Abdul Wahid Omar, Maybank President and CEO, said, “This quarter’s results continue to bear testimony to the Group-wide transformation efforts that we have embarked on since 2008.”

“Given our mission to humanise financial services across Asia, we are renewing our focus on key markets across the region where we see significant opportunities to bring Maybank’s unique brand of products and facilities to our stakeholders,” Omar said, adding, “Of particular note is the significant progress we have made in our Indonesian operations, the third of our "home markets" after Malaysia and Singapore.”

Barring unforeseen circumstances, Omar said he expects Maybank's performance for the financial year ending 30 June 2011 to be better than the last financial year and on track to meet the targeted 14% Return on Equity.