Malaysian banks' loan growth slipped slightly to 5.3% in February

Loan growth slowed across most key sectors.

Maybank Kim Eng reports that industry loan growth moderated slightly in Feb 2017 to 5.3% YoY from 5.6% YoY in Jan 2017, as household loan growth continued to soften to 5.1% YoY (from 5.2% YoY in Jan 2017) while non-HH loan growth slipped to 5.6% YoY from a strong 6.1% YoY in Jan 2017.

Here's more from Maybank Kim Eng:

On the household front, non-residential property loan growth slipped below 6% to 5.7% YoY in Feb 2017 while mortgage growth was a softer 9% YoY (9.1% YoY in Jan 2017). Auto hire purchase continued to contract, as did securities lending.

Reflecting the rise in living costs is the fact that personal financing continues to expand at a stable, albeit moderate, 4.5% YoY, while credit card financing was slightly faster at 1.7% YoY versus 1.1% YoY in Jan 2017.

On the non-HH front, working capital loan growth was marginally slower at 6.1% YoY (6.3% YoY in Jan 2017). On a sectoral basis, slower loan growth was noted across most key sectors, particularly real estate lending, where growth declined to 10.6% YoY from 11.4% YoY in Jan 2017. Manufacturing loan growth held steady at 2.3% YoY (2.1% YoY in Jan 2017).