MALAYSIA - BANKING - CIMB Islamic Bank Sees 15-19 Per Cent Loan Growth This Year

KUALA LUMPUR, Sept 5 (Bernama) -- CIMB Islamic Bank Bhd aims to see a moderate total loan growth of between 15 per cent and 19 per cent for financial year 2011, said Chief Executive Officer Badlisyah Abdul Ghani today.

Currently, CIMB Islamic's loans accounted for 13.8 per cent of CIMB Group's total loans.

"Loan contribution from both the conventional and Islamic banks are growing and we expect our share of (loan) book to grow bigger as well, however not so fast. (source)

"Probably it will surpass mid teens, about 15 to 19 per cent and that's the intention for this year," he told reporters at the Memorandum of Understanding signing ceremony for The Halal Fiesta Malaysia 2011 (HALFEST) here, Monday.

CIMB Islamic is also confident of a moderate growth with the Syariah-compliant banking products amid the increasing demand and growth potential in the industry, he said.

On the uncertain global headwinds, Badlisyah said the impact would be somehow limited and not a significant one, as Malaysian economy will be driven mostly by local demand.

He also said the bank expected to maintain the growth rate of about 20 per cent for the Islamic commercial banking segment for Small and Medium Enterprises (SMEs).

"We focus on credible companies from all industries with credible business plans. If they fulfill the relevant requirements, then we will support them," he explained.

CIMB Islamic being the main sponsor of HALFEST 2011, it would be a platform to further assist the industry at large, particularly the SMEs, Badlisyah said.

HALFEST 2011 to be held from October 12-16 with 727 booths, will showcase halal products and services to an estimated 50,000 visitors.

Second Finance Minister, Datuk Seri Ahmad Husni Mohamad Hanadzlah witnessed the signing between CIMB Islamic and Shapers Malaysia Sdn Bhd (organiser) as well as that between Majlis Amanah Rakyat (co-organiser) and Shapers.

Shapers Chief Executive Officer Mohd Shukri Abdullah has projected business transactions worth RM25 million to take place during the event.

Source : http://www.bernama.com/bernama/v5/newsbusiness.php?id=611619  - Sept 5, 2011