Malaysian banks to grow

Malaysian banks to grow

KUALA LUMPUR (AFP): Malaysian commercial banks are expected to repeat their strong 1993 showing this year but may face future stiff competition from high-profiled foreign banks operating locally, analysts said.

Based on the surge in infrastructure projects to sustain Malaysia's booming growth, analysts expected overall growth of the Malaysian banking sector this year to exceed 30 percent.

In 1993, Malaysian banks performed above expectations with total unaudited pre-tax profit rising 47 percent to M$3.9 billion (US$1.56 billion) on an 11.4 percent growth in total loans to M$86.4 billion ($34.5 billion).

Commerce Asset-Holding Bhd., the parent company of Bank of Commerce Bhd, on Friday reported a 62 percent hike in its group pre-tax profit to M$114 million for the six months ended June 30.

"Bank of Commerce should perform strongly in 1994, given that 1993 loans and advances grew 26.5 percent in the second half, said Merrill Lynch's Singapore-based vice president, Lai Kwok Kin.