ASEAN KEY DESTINATIONS
CIMB lowers 2016 loan growth target
MALAYSIA’S second biggest bank CIMB Group Holdings Bhd said it will not be able to meet its 2016 targets for loan growth and return on equity as it expects a challenging macroeconomic environment in Southeast Asia for the second half.
The company lowered its loan growth target for the year to 6-7 per cent for 2016 from the initial target of 10 per cent.
“We expect moderate pick up in loan growth in the second half but it’s still a very challenging environment,” group CFO Shahnaz Jammal told a results briefing yesterday.
CIMB has expanded in Southeast Asia in the past decade but the region has suffered slowing economic growth and depreciating currencies this year.
In an earlier statement, CIMB said the performance of its Singapore and Malaysia operations are expected to be subdued.
CIMB’s net profit rose 36 per cent to RM872.8 million (US$216.31 million) for the quarter ended June from RM639.8 million in the same period a year ago. Two analysts had an average profit forecast of RM695 million for the quarter, according to Thomson Reuters data.
Net interest income for the quarter rose about four per cent to RM2.35 billion, it said in a statement.
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Indonesia to launch 13th economic package this month
Coordinating Economic Minister Darmin Nasution said on Wednesday that the government would release its 13th economic policy package in August, adding that the draft had been completed.
Darmin said the 13th package was largely an extension of the previous one, but would expand its focus beyond industry. The 12th package focused on small and medium enterprises.
"We are just waiting to schedule a meeting with the president," Darmin told reporters at his office. He refused to give the exact date the new policy package would come into effect.
The ministry team must meet with President Joko "Jokowi" Widodo one more time to finalize the details, Darmin said.