Business

Wednesday February 18, 2009

AmBank says higher NPLs manageable

By K.C LAW


KUALA LUMPUR: AmBank (M) Bhd may see a rise in its non-performing loan (NPL) ratio amid the economic slowdown but it will be manageable, said the bank’s managing director for retail banking Datuk Mohamed Azmi Mahmood.

He said there was evidence of mild stress in loan repayments to the bank.

“Malaysia’s economy is affected by the world economy. Thus, NPLs will come up but we don’t think it will be as bad as in the 1997 Asian financial crisis,” Mohamed Azmi said after launching the AmBank Treasure Quest Contest yesterday.

“(This is because) banks are more prudent in risk management now and the public are more cautious on spending.” AmBank currently has a net NPL ratio of 2.7%, the lowest in the history of the company.

The group had projected a loan growth of 9% for this financial year ending March 31.

AmBank will continue to expand its retail banking aggressively in terms of the number of automated teller machines (ATM), retail bank branches and internet banking, among others, Mohamed Azmi said.

By the end of this year, AmBank will rank number three in terms of the number of ATMs and number four in terms of the number of branches, he said, adding that the bank has no plans to reduce capital expenditure for this year.

“In the long term, retail banking is a growing market as consumers need to buy cars and houses, the population will continue to grow,” he said.

The AmBank Treasure Quest Contest is a lucky draw contest with a reward worth RM238,000 for new and existing customers of the bank who have minimum savings of RM2,000.

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