AmBank sees loan growth doubling

  • Banking
  • Thursday, 15 Dec 2016

Card attraction: (from left) Lee, Sulaiman and AmBank retail banking deputy MD Anthony Chin showing the Audi car up for grabs at the launch of the campaign.

KUALA LUMPUR: AmBank (M) Bhd projects its loan growth for the financial year 2017 (FY17) to double compared with the preceding financial year, amid the challenging banking operating environment.

AMMB Holdings Bhd group CEO Datuk Sulaiman Mohd Tahir said he was optimistic that AmBank could register 4%-5% loan growth in FY17, from approximately 2% in FY16 which ended on March 31.

“Ambank has a very strong non-performing loan (NPL) position, lower than the industry as a whole. Our capital ratio is also strong at approximately 11.2% to date.

“So I’m positive on our impaired loans over the next six months because of our non-concentration in the real estate and oil and gas sectors. In fact, our NPL could also come down,” said Sulaiman, adding that AmBank hoped to position itself among Malaysia’s top four banks by 2020.

With regard to loans to small and medium enterprises (SME), Sulaiman noted that growth of SME loans will be lower this year at between 7% and 8%, despite performing better than large corporations.

“Last year, SME loan growth was at 13%-14%,” he said after the launch of Ambank’s #JoyFortuneLove credit card campaign which runs from Nov 1, 2016 to March 31, 2017.

The latest campaign targeting AmBank credit cardholders, offers two lucky cardholders a chance to win an Audi TT 2.0 TFSI each as the grand prize, for every RM50 spent in a single receipt using their AmBank credit card.

AmBank credit cardholders also stand a chance to win 30 Samsung Galaxy S7 Edge phones as monthly prizes and RM50 cashback daily prizes.

To participate in the campaign, cardholders simply need to register their interest via a one-time SMS and will receive one entry for every spend of RM50 in a single receipt. Also, with every cumulative spend of RM1,000, cardholders will be rewarded with an additional 10 entries.

The #JoyFortuneLove drive was the second campaign targeting cardholders, following the first successful “Win an all-new 2016 Toyota Vellfire with AmBank!” campaign which saw some 50,000 participants, with more than half a million entries.

AmBank managing director for retail banking Jade Lee said the bank has seen over 100% growth in new credit cardholder volume, in contrast with the industry’s single digit growth.

“We are seeing faster growth in new credit cards than the industry because we are also focusing more on new customers,” said Lee, adding that AmBank has over 400,000 credit cards in force as of November 2016.

An average of RM7,000 was spent per AmBank credit card on an annual basis.

On the outlook of the banking sector, Sulaiman voiced his concern over the industry due to the economic and political uncertainties globally.

“However, I am expecting a pick-up in the banking sector’s operations in the second half of 2017 as more stability can be expected,” said Sulaiman.

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Business , AmBank , loan , growth , card , campaign , NPLS ,


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