KUALA LUMPUR: AmBank Group Bhd is targeting 6% growth or RM6 billion to RM7 billion in loan disbursements for the financial year ending March 31, 2024, said group CEO Datuk Sulaiman Mohd Tahir.
The projection, he added is based on its assets estimated at RM130 billion in the year prior.
‘’Our assets last year were about RM130 billion and we are anticipating gross domestic product (GDP) growth of 4.5% and banks normally will ride close to the GDP.
“We (AmBank) normally (achieve) slightly higher than the GDP. Let’s say for this year is 6% loan growth on RM130 billion assets, roughly about RM6 billion to RM7 billion worth of growth in terms of actual loan being disbursed,” he told reporters at a press conference today after the International ESG Conference 2023: Shaping Today For Tomorrow.
For the financial year ended March 31, 2023, the group recorded 8.5% loan growth worth RM10.2 billion to RM130.2 billion across all segments.
Sulaiman said AmBank is looking to double its green financing segment in FY24 from RM2 billion disbursed last year.
He added that electric vehicle (EV) financing totalled RM100 million and expects it to grow substantially this year due to the entry of many prominent EV players into Malaysia, including Tesla and China-based BYD Co Ltd.
Sulaiman reckoned that prominent segment contributors this year will include green loan for buildings such as apartments and warehouse, as well as transport and logistics.
Meanwhile, Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad encourages financial institutions to collaborate with government agencies and civil society to create partnerships that drive sustainable development and support Malaysia's transition towards a green economy.
He said industry collaborations are the most powerful tool to support Malaysia’s ambition and urged the banking sector to recognise their role as catalysts for change.
“By incorporating sustainable energy projects into their lending portfolios, financial institutions can incentivise and promote the development of clean energy infrastructure, this will be instrumental in accelerating the transition by providing businesses and individuals with the necessary capital to pursue renewable energy initiatives,” Nazmi said at the event.
He added that by supporting such projects, banks are “voting for sustainability and therefore, a better future for Malaysia”.
Touching on the National Energy Transition Roadmap, he said the second phase of the roadmap would be launched by Prime Minister Datuk Seri Anwar Ibrahim at the end of this month and will focus on “broader policies”.
The event also saw AmBank sign a memorandum of understanding with Huawei Technologies Malaysia Sdn Bhd to collaborate in the introduction of solar energy, green data centres, EV charging, and energy storage solutions.
