business
Maybank expects 70% loans growth with second Laos branch
The two Maybank branches in Laos currently have a paid-up capital of about RM99.91 million in total and a combined staff strength of 30. – Reuters pic, March 8, 2016.Malayan Banking Bhd (Maybank) expects the opening of its second branch in Laos will further boost its franchise in the country and lift its loans and deposits growth to over 70% and 100% respectively by the end of this year.
This follows the encouraging growth experienced by the first branch, opened in 2012 in the capital city of Vientiane, which saw loans and deposits rising at an annual average of 46% and 78% respectively over the last two years.
Maybank International chief executive officer Pollie Sim said the new branch, located in the commercial district of Nongduang, would boost Maybank's ability to support the increasing trade between Laos and other Asean nations, which had risen by 90% between 2006 and 2012 to US$2.48 billion (RM10.18 billion).
"We anticipate significant potential especially in the trade finance and remittance segments given our unique position as the only bank with on-ground operations in all 10 Asean countries, which can connect clients to most major financial markets," Sim said in a statement today.
She added that the opening of the Nongduang branch would further strengthen Maybank's presence in the Indo-China region and enhance its ability to meet the banking needs of customers, particularly the growing investor base in the country.
"Lao PDR is among one of the strongest performing economies in the region, with steady economic growth of around 8.5% for the past four years and anticipated to achieve 7.5% real gross domestic product growth on average from 2016 to 2020, according to the government's 8th development plan.
"Last year, the economy saw strong inflows of foreign investment totalling some US$1.26 billion, mainly in hydropower and transportation projects," said Sim.
The new branch was officially opened by the deputy governor of the Bank of Lao PDR Vathana Dalaloyat at an event hosted by Maybank Chairman Tan Sri Megat Zaharuddin Megat Mohd Nor.
The two Maybank branches in Laos currently have a paid-up capital of LAK200 billion (about RM99.91 million) in total and a combined staff strength of 30. – The Edge Markets, March 8, 2016.
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