Maybank Securities expects Security Bank’s lending growth will slow down to 9 percent this year due to subdued credit demand caused by higher interest rates.
However, the lending growth is expected to accelerate to 11 percent in 2024.
The bank’s recovery in wholesale and retail loans helped buoy lending to 12 percent in 2022, but it was partially offset by higher deposit costs and reduced current and savings account percentage.
Maybank Securities also forecasts a credit cost decline to 50 basis points in 2023 and 2024 as credit quality improves, with only a small uptick in its non-performing loan ratio to 3.1 percent at the end of 2023.
Security Bank plans to open 17 more branches in 2023 to maintain its deposit franchise.