KANASAI from 5.55 to 5.8, kaulat liao my loan... still waiting from alliance bank...
CIMB Group has targeted a 12 per cent loan growth for this year compared to the eight per cent in 2009, said its group chief executive officer, Datuk Seri Nazir Razak. "We are estimating an overall total loan growth of 12 per cent for the Group and 10 per cent for just Malaysia. "Last year, we estimated eight per cent for across the region but achieved 11 per cent," he said today. CIMB, anticipating a more favourable environment this year, expects the small and medium enterprise (SME) sector to boost loan demand besides mortgages, personal loans and the credit card segment. "Besides SMEs to enhance growth, momentum in mortgages will also be a strong growth driver.Success in personal loans and the credit card segment will also contribute to an increase in loan demand," he explained. Speaking to reporters at the launch of the CIMB Twin Yield Income Investment Structured Product here, Nazir said he was confident that an increase in interest rates would not affect loan growth. He also announced that CIMB Bank and CIMB Islamic Bank would increase their base lending rate (BLR) and the base financing rate (BFR) respectively, by 25 basis points from 5.55 per cent to 5.8 per cent, effective tomorrow. The change in rates follows Bank Negara Malaysia's decision to increase the overnight policy rate (OPR) by 25 basis points. The bank's savings and fixed deposit rates would also be increased by up to 25 basis points, he stated. "We are supportive of Bank Negara's move to normalise interest rates as the economy regains stability and are immediately transmitting it to both savers and borrowers," he added. He described the change in the interest rate as timely. Asked if there would be a further increase following the recent move, he said: "We leave that to Bank Negara's wisdom. But our analyst have come up with a total increase of 50 to 75 points basis for this year." "Business shrank by six per cent last year.This year however, we foresee it to be in positive territorty," he added. He said the Group would focus on integrating its regional platform and not acquisitions. Nazir also announced that CIMB Group had a market capitalsation of RM50 billion today. "We have succeeded in developing it from RM5 billion to RM50 billionn, in the space of five years," he highlighted. Meanwhile, commenting on the new investment product launched today, Deputy CEO, Group Treasury and Investments, CIMB Group Datuk Lee K. Kwan said the conventional investment product aims to pay a minimum cumulative average anualised fixed income return of 4.88 per cent half-yearly for 10 years. "It also has the potential to earn additional uncapped variable returns annually with an average dividend yield rate of 0.90 per cent, adjusted for price movements of the variable underlyings," he explained. The new product provides investors with the comfort of knowing that 100 per cent of the principal is payable on call dates of the product. "It is also backed with the added potential of capitalising on CIMB Group's regional expertise with its presence in Southeast Asian countries plus China's growth through commodities reference," he added. The product yields two returns instead of one from high cumulative fixed income returns referenced to CIMB Group's AA3 rated Subordinated Note (Rated by Rating Agency Malaysia) and variable equity based dividends from markets where the Group is well-positioned. Lee said the minimum investment amount is RM250,000 and in further multiples of RM5,000 thereafter.--Bernama
