Will CIMB meet its 2018 loan growth forecast?

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CIMB Group Holdings Bhd is projected to meet its 2018 loan growth forecast of between six and seven per cent.

CIMB Group Holdings Bhd forecasts its loan growth to remain between six and seven per cent for the year 2018. This projection is contingent on current economic conditions remaining stable, with Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz expressing confidence in achieving this target. The reintroduction of the Sales and Services Tax (SST) in September is not anticipated to significantly affect loan growth due to continued strong consumption.
Domestic Loan Growth on Track

For Malaysia specifically, the bank's loan growth target is considered on track. Tengku Zafrul indicated that based on current observations and the prevailing economic growth rate, CIMB is well-positioned to meet its domestic objectives. This confidence stems from an assessment of the immediate economic landscape within Malaysia.
Regional Performance and T18 Initiatives

Across the group, CIMB is observing positive developments in Indonesia and Thailand, while Malaysia and Singapore continue to demonstrate robust performance. The bank's Target 2018 (T18) initiative, launched in February 2015, which aims to optimise cost structure and strengthen organisational culture, is also on course to meet its goals for the year. Key T18 targets include achieving a return on equity exceeding 10.5 to 11 per cent and reducing the cost-to-income ratio to below 50 per cent.
Potential External Risks Identified

While optimistic about meeting its targets, Tengku Zafrul acknowledged that external factors could influence outcomes. He noted that the escalating US-China trade war and potential US interest rate hikes could impact the region. However, assuming these factors remain constant, the bank anticipates successfully achieving its T18 objectives.

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Will CIMB meet its 2018 loan growth forecast?

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