Towards Financial Freedom
June Stats Point To Moderating Loans Growth
Loans growth (DBU and ACU loans) moderated further in June to 15.1% y-o-y vs May's +15.8% y-o-y, with the moderation mainly due to the business segment. Housing loans growth also moderated to 13.5% y-oy, compared to +14.6% y-o-y in May. Nevertheless, the slowdown is largely expected and our loans growth assumptions already imply slower growth in the quarters ahead. Maintain Neutral on the sector.
- June statistics showed DBU + ACU loans up 15% y-o-y. Loans growth momentum moderated further in June, with domestic banking unit (DBU) and Asian currency unit (ACU) loans expanding by 15.1% y-o-y vs May's +15.8% y-o-y (DBU: +17.7% y-o-y; ACU: +12.1% y-o-y). The moderation was mainly due to the business segment, where y-o-y growth eased to +15.5% y-o-y in June vs +16.3% y-o-y in May. M-o-m growth also slowed down to +0.4%, compared to +2.2% m-o-m in May (DBU: +0.7% m-o-m; ACU: -0.1% m-o-m). Similarly, the moderation was mainly caused by the business segment (+0.2% m-o-m vs May 2013: +2.5% m-o-m). Loans to the consumer segment were relatively more resilient at +14% y-o-y/+0.8% m-o-m.
- DBU loans still driven by loans to businesses. June 2013 DBU loan growth was still driven by business loans, albeit with some moderation (June 2013: +20.4% y-o-y/+0.7% m-o-m vs May 2013: +22% y-o-y; +1.6% m-o-m). Key growth drivers for the business segment were the manufacturing (+46% y-o-y) and general commerce (+25.9% y-o-y) sectors. Of note, June's y-o-y and m-o-m growth in DBU business loans were the slowest YTD. Meanwhile, DBU consumer loans experienced a milder moderation in growth of +13.8% y-o-y (+0.7% m-o-m) vs May's +14.5% y-o-y (+0.6% m-o-m), with the slower y-o-y growth reflecting the continued slowdown in housing loans growth (+14.5% y-o-y/+0.8% m-om vs May 2013: +15.2% y-o-y/+0.5% m-o-m). Potentially, the earlier property market cooling measures could be starting to filter through the system.
Source: OSK
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