AmBank: SMEs to benefit the most from low interest rates

KUALA LUMPUR: AMMB Holdings Bhd (AmBank), which aims to focus on its small and medium enterprise (SME) segment this year, said the segment will benefit the most from the low interest rate environment currently, given the low cost of borrowing.
Ambank Group CEO Datuk Sulaiman Mohd Tahir said he expects the bank's SME loans portfolio will continue to grow this year, compared to its other segments including retail and hire purchase loans, as they are mainly driven by the market sentiment.
"In terms of loans, we want to focus on SME, while the rest we just want to maintain our position because we foresee the growth will continue to be there at least (for) SME," he said at a press conference after the signing of a merchant agreement with Advelsoft (M) Sdn Bhd today.
AmBank recently announced to reduce its base rates and base lending rates by 20 basis points each following the cut in the Overnight Policy Rate (OPR) last week.