Malaysia: CIMB Islamic to add 19% to group loans

| 06/09/2011 | Reply

By Liz Lee, The Star

KUALA LUMPUR: CIMB Islamic Bank Bhd expects to contribute between 15% and 19% to the group’s total loans this year, which currently stood at 13.8%.

“Both our conventional and Islamic banks (loan contributions) are growing. We can expect the share of (loan) book in our Islamic banking to grow bigger but not so fast. It should probably surpass mid-teens,” CIMB Islamic Bank chief executive officer Badlisyah Abdul Ghani said.

He said that there was no target set for the share of book within CIMB Group as it was largely dependent on customer demand. The bank would continue to market and sell Islamic products.

Badlisyah: We can expect the share of loan book in our Islamic banking to grow bigger but not so fast. It should probably surpass mid-teens.

On the global economic uncertainties, Badlisyah said the impact would be limited on Malaysia’s economy which was largely driven by local demand.

As for the Islamic commercial banking for small and medium-sized enterprises (SME) sector, he said the loan growth rate was now in the range of 20% and that the bank would maintain the rate for the year.

Badlisyah added that the bank wanted to enhance its SME support and had entered the market aggressively.

“We are looking for credible companies with credible business plans. If they fulfil all the relevant requirements, we will support them whether in the halal industry or anywhere else,” he said after the signing ceremony between Majlis Amanah Rakyat and Shapers (M) Sdn Bhd yesterday to collaborate on the Halal Fiesta (Halfest).

The signing was witnessed by Second Finance Minister Datuk Seri Ahmad Husni Mohd Hanadzlah.

Halfest is a halal expo serving as a platform for SMEs and Mara-supported entreprenuers to market their products and services. It is also a stepping stone for entrepreneurs to enter the halal export market through the Malaysia International Halal Showcase.

“We recognise that these halal industry players are always improving and seeking innovative ways to raise funds. As such, we are pleased to be able to play a role in assisting (those who need financial help) to develop the industry. We see it as a merger of faith and the economy,” Badlisyah stated in a press statement.

CIMB Islamic Bank is the main sponsor for the expo held from Oct 12 to 16 at PWTC, housing 727 booths and an expected crowd of 50,000. The forecast value of transactions for the expo is RM25mil.

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Category: Asia, Finance & Investment, Trade Events

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