Loan growth increased the most in overseas markets.
Comparing year-on-year, the largest increase in loan growth came from the "Others" region, which includes Australia, UK, USA, etc. Loans rose 20-40% yoy, according to Maybank Kim Eng (see chart below).
These can be attributed to both Singapore companies and those overseas looking to expand, making investments and acquisitions.
“By tapping their franchise in the region, Singapore banks also saw demand in Indonesia, Thailand and Greater China. Banks have guided for mid-single digit loan growth in FY17. We expect banks to grow by 2-4% in FY17 due to increased competition, especially in wholesale banking and consumer loans,” adds Maybank Kim Eng.
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