KUALA LUMPUR: RHB Research has maintained its 2024 forecast for loan growth between 4.5 and five per cent following healthy loan growth reported in January.
The firm said loans grew 5.7 per cent year-on-year (YoY) in January, outpacing deposit growth, driven by loans to households as well as the finance and manufacturing sectors.
However, lending indicators showed sequentially lower demand from the business segment, although RHB Research noted it is still early in the year.
"We maintain our 2024F system loan growth forecast of 4.5–5 per cent but highlight that from the recent round of briefings, loan demand looks healthy and there could be upside risks to our forecast," it said.
On a three-month moving average basis, system loan applications rose by 25 per cent YoY, with strong increases in both business (up 24 per cent YoY) and household (up 26 per cent YoY) applications.
Similarly, loan approvals surged by 36 per cent, but disbursements have been slower, increasing by only three per cent YoY.
Current account saving account (CASA) grew five per cent, outpacing that of fixed deposits, which led to a higher CASA ratio of 31.2 per cent in January. It recovered from a low of 30.3 per cent in May 2023.
The firm maintained a "neutral" call on the banking sector