The banking sector could grow at double the country’s gross domestic product (GDP) rate in 2013 based on strong third-quarter (3Q) growth this year and various projects under the Economic Transformation Programme (ETP) that will be implemented, says Malayan Banking Bhd (Maybank) president and chief executive officer Datuk Seri Abdul Wahid Omar.
He said the 5.2% 3Q growth and ETP projects will create a conducive environment for the banking sector growth next year.
“The banking sector will play a major role fuelling the growth of the economy and our in-house analysts are expecting a 5% GDP growth for 2013 based on the many projects to be implemented.
Within that context, we expect the banking sector to grow at about double that GDP rate,” Abdul Wahid said in Kuala Lumpur yesterday.
The Maybank chief would not commit on the bank’s growth prospect for 2013 but said that “at the end of the day, based on the broad micro-economic indicators, it is going to be a conducive year for the banking sector and Maybank.”
He was speaking to reporters after launching the Maybank One Solution banking, which is a 7-in-1 banking product, bundled with fast approval aimed to cement Maybank’s leadership in the domestic retail banking segment.
Maybank has offered this kiosk banking concept for the last seven months with 30,000 new customers.
There are 25 kiosks currently available at malls and hypermarkets.
This figure would increase to 33 by the end of the year with 45 more kiosks opening next year.
Maybank says it signs up about 400,000 new accounts each year and that 90% of these accounts are retail. It expects up to 40% of new customers will open a Maybank One Solution account.
Abdul Wahid said he did not expect kiosk banking to curb Maybank’s appetite for opening conventional branches.
“This is a mutually beneficial arrangement to provide convenience to customers in terms of reach, physical location, opening hours and simplicity of opening accounts and 10 minutes loan approvals,” he said.
The products offered are savings, financing and insurance which are under conventional banking model and it is planning an early 2013 offering of Islamic banking products.
“As we progress forward we will add more products to the solution. That will be announced in the future,” Abdul Wahid said.
Earlier, during the press conference, Abdul Wahid declined to comment on Maybank’s regional expansion especially in Indonesia.
Recently, The Malaysian Reserve reported that the Indonesian subsidiaries of Maybank and Malaysia’s number two bank CIMB Group Holdings Bhd had declared positive 3Q ended Sept 30, 2012, financial results.
Maybank’s 97.5%-subsidiary PT Bank Internasional Indonesia TBK reported a record 66% increase in net profit to 922 billion rupiah (RM295 million), while CIMB’s 97.9%-subsidiary PT Bank CIMB Niaga TBK announced a respectable 30% increase in net profit to 3.1 trillion rupiah.
CIMB claims the region’s widest network. It operates across Asean under several corporate entities including CIMB Investment Bank Bhd, CIMB Bank Bhd, CIMB Islamic Bank Bhd, CIMB Niaga, CIMB Securities (Singapore) Pte Ltd and CIMB Thai Bank pcl, while the group has a presence in 18 markets around the globe.
Maybank has a presence in Thailand via Maybank Kim Eng Securities (Thailand) plc and commercial banking operations in Singapore, Philippines, Hong Kong and Cambodia.