CIMB Niaga's loan growth expected to hit 5% in FY17

It only grew 2.9% in Q1.

According to Maybank Kim Eng, Niaga’s 1Q17 loan growth was subdued, expanding just 2.9% YoY and contracting 2.3% QoQ due to the repayment of IDR4tn worth of loans during the quarter. On a QoQ basis, consumer loans contracted 2% as growth in mortgages was offset by a contraction in auto and credit card financing.

"SME lending improved 3% QoQ (mainly working capital lines to the manufacturing, services, retail and agriculture sectors) but corporate banking loans contracted 6% QoQ due to several large repayments, particularly of restructured loans. Management looks towards a pick-up in overall loan growth in 2H17 and our forecast assumes a 5% loan growth in FY17," added Maybank Kim Eng.