KUALA LUMPUR (May 31): AMMB Holdings Bhd (AmBank) is targeting a loan growth of 6% for its financial year 2019 (FY19), matching the rate achieved in its financial year ended March 31, 2018 (FY18), as loans to small and medium enterprises (SMEs) and mid-sized corporate firms should still see double digit growth.  

“We have seen a change in government-linked companies recently, but that will not deter us. There may even be better opportunities for SMEs and mid-caps now,” said Datuk Sulaiman Mohd Tahir, Ambank group chief executive officer, to reporters at the group's fourth quarter (4QFY18) results' briefing today. 

AmBank group chief financial officer Jamie Ling added that the group “does not see stress in its books currently” from its exposure to GLCs, although the bank remains vigilant of second order effects on its loans, as a result of the cancellation of mega infrastructure projects. 

Sulaiman said the group remains committed to growing efficiency and cutting costs by RM300 million over the next two years. Its cost management initiatives in FY18 had seen the group saving up to RM140 million as it lowered funding costs, completed a mandatory separation scheme and reduced regulatory costs. 

“Going forward, it will be more difficult to lower costs, but we are looking at areas such as reducing office space, negotiating contacts with vendors and business growth by individual departments to cover a natural 3% cost inflation,” Ling said.