AmBank projects double-digit SME loans growth

KUALA LUMPUR — AMMB Holdings Bhd (AmBank) expects loans growth from the small and medium enterprise (SME) sector this year, with the bank also focusing on building its mass affluent as well as the cash management and transactions segments.

“Last year, we saw SME loans grow 14.9% and we see continually strong growth this year driven by increased local infrastructure projects.

“We expect the segment to grow by double digits for this year from subcontracting activities related to projects such as the Pan Borneo Highway,” Ambank group chief executive officer Datuk Sulaiman Mohd Tahir told reporters yesterday.

Meanwhile, the bank expects its customers in the mass affluent segment to diversify investments into areas such as fixed deposits, where the risks are lower.

In terms of AmBank’s hire purchase segment, Sulaiman said it has dropped by 20% in terms of applications and approvals in the last three months and thus, he does not expect the segment to grow significantly.

Commenting on the effects of the overnight policy rate cut by Bank Negara Malaysia, he said the property sector is unlikely to grow massively from the decision.

Yesterday, AmBank signed a partnership with Advelsoft to introduce JomPay services, which allows efficiency and accessibility, for building management operators and tenants to make online payments and add value to its existing software.

Currently, property management software provider Advelsoft caters to more than 600 condominium buildings, with the majority located within Klang Valley.

“With the signing of the new partnership, both building management operators and tenants will benefit, with the latter having the option of making online payments via JomPay,” Sulaiman said.

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