Malaysian banks' loan growth hit 5.7% in June

Household loans grew 5% in the same month.

Industry loan growth was a slightly faster 5.7% YoY in June versus 5.5% YoY in May. Maybank Kim Eng reported that household loan growth stepped down to 5.0% YoY from 5.1% YoY in May but non-household loan growth was a faster 6.5% YoY versus 6.1% YoY in May.

"On an annualised basis, industry loan growth picked up pace to 3.5% (+2.8% in May). Positively, annualised HH loan growth was a tad higher at 3.9% (+3.7% in May) while non-HH loans expanded at a faster rate of 3.1% (+1.6% in May).

Here's more from Maybank Kim Eng:

On the household front, YoY growth had been stable at 5.1%-5.2% over the past five months to May, but stepped down to 5.0% in June. A cautiously optimistic development is that mortgages finally arrested the downtrend in growth which has persisted since Nov 2015, by rising 8.9% YoY in June versus 8.6% in May.

This, however, was not sufficient to offset the steep slowdown in non-residential property loans to 3.8% YoY in June from 4.7% YoY in May, and the resumption in the contraction of auto loans.

On the non-HH front, working capital loan growth rebounded to 7.1% YoY in June from 5.6% YoY in May, led by faster growth in manufacturing, wholesale/retail and construction, which more than offset the slowdown in real estate and finance/business lines.