Maybank to expand overseas lending

TOP lender Malayan Banking Bhd (1155) aims to grow overseas lending to 40 per cent of total loans by 2015 from 33 per cent now, in line with its goal to become one of the region's top banks by then.

Profit from foreign markets and offshore operation is expected to account for a third of the group profits by 2015, up from less than a quarter now, president and chief executive officer Datuk Seri Abdul Wahid Omar said yesterday.

"The domestic market is growing as well, but the rate of growth overseas will be faster than local expansion in the next few years," Abdul Wahid said at a media briefing in Kuala Lumpur to mark the start of a year-long campaign to celebrate the bank's 50th anniversary.

After a string of banking purchases in Indonesia, Pakistan and Vietnam in 2008, Maybank now wants to focus on boosting its presence in the existing markets. It plans to add 200 branches in Indonesia in the next three years, from 250 now. Five will be opened in the Philippines this year, adding to the existing 45. In Cambodia, four will be added to bring the total to 11. The bank operates in 14 countries, including seven in Southeast Asia.
To cope with the fast growth, chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said Maybank needs to invest to boost both its staff and its computer system.

"Our people are not very prepared with the rapid expansion which happened in the year before, where we went from just Malaysia to include Indonesia and other countries," Megat Zaharuddin said. "Our system, especially information technology, which we thought was okay a few years ago, probably needs major upgrade now."

Maybank didn't say how much investment it needs for the systems upgrade.