Analysts lowered their industry loan growth forecast to 4.6%.
Into the second half of 2017, loan growth is still not picking up pace. According to Maybank Kim Eng, July loan growth was 5.6% YoY (5.7% in June) with household (HH) loan growth at 5% (5% in June) and non-HH loan growth at 6.3% (6.5% in June).
Here's more from Maybank Kim Eng:
Annualised loan growth, however, was slower at 3.1% in July (3.5% in June) with HH loan growth stable at 3.9% but non-HH loan growth slipping to 2.2% from 3.1% in June.
Following from the 2Q17 results season, we have pared 2017 aggregate loan growth for the seven banking groups to 4.7% from 6.1% previously.
In terms of domestic loan growth, we have lowered the 2017 aggregate loan growth rate of the seven banks to 4.6% from 6.2% previously and correspondingly, we are lowering our industry loan growth forecast to 4.6% as well from 5.4% previously.
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