HLBB sees loan growth of 9% to 10% this year

PUCHONG: HONG LEONG BANK BHD [] (HLBB) is expecting a loan growth of between 9% and 10% this year, along with its expansion plan for a total of 10 new branches in the next 18 months, said its group managing director Yvonne Chia.

She said the cost of investment, including refurbishment in some of its existing branches, was estimated at RM20 million.

“The cost to set up a branch ranges from about RM1.2 million to RM2.8 million depending on the location,” Chia told reporters after opening a branch in Bandar Puteri here on April 8, simultaneously with another one in Kelana Jaya.

Among those present was IOI CORPORATION BHD [] executive chairman Tan Sri Lee Shin Cheng.

Currently, HLB has 186 branches, with a total customer base of two million in the country. It has a branch each in Singapore and Hong Kong.

“We want to transform the HLBB branch network into a franchise differentiator with a strong, recognisable distribution footprint. Our branches will be the bedrock of the bank’s growth strategy,” Chia said.

She said HLBB’s customer base was encouraging with a compounded annual growth rate of 8% over the last five years. “At the moment, we are also focusing on our organic growth by reaching out to our community,” she added.

Written by Darlene Liew