Sep 3, 2010
AMMB won’t sacrifice property loan margins
KUALA LUMPUR: AMMB Holdings Bhd will not sacrifice its property loan margins for the sake of gaining market share, said group managing director Cheah Tek Kuang.
He said the banking group was aware of the current keen competition in the property loan segment but preferred to focus on achieving a more balanced loans portfolio.
Home loans currently make up 20% of the group’s total loans.
“We will not be one of those which offer cut-throat rates to increase market share,” he said after the group’s AGM yesterday.
Short of admitting there was currently a price war in the housing loan segment, Cheah said AMMB, the fifth largest banking group in the country, would instead focus on improving its other areas of business.
One of the joint operators just issued new family takaful licences, AMMB aimed to get the business running by June, Cheah said. “We have about nine months to get things started.”
Its foreign exchange and derivatives business, which recorded RM50mil in sales last year, is also expected to do well on growing demand. The segment was expected to achieve more than RM200mil in sales over the next five to seven years, he added.
On another note, Cheah said AMMB had yet to meet with Bank Negara to discuss possible moves to curb property speculation.
“We’ve not sat down with Bank Negara yet but this is an industry issue and we do meet with the central bank on a regular basis for discussions on industry-related matters,” he said.
For the financial year ended March 31, AMMB made a profit after tax and monitory interests surpassing the RM1bil mark, the highest in its history.
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