MALAYAN Banking Bhd (Maybank) is projected to disburse some RM85 billion worth of mortgages as well as loans to small and medium enterprises (SMEs) over the next three years.

Its group president and CEO Datuk Abdul Farid Alias (picture) said the banking industry remains committed to supporting borrowers, particularly those who require financing to purchase homes, which would, in turn, support the domestic economy.

"We plan to disburse about RM50 billion in housing loans over the next three years," he told reporters after the group's AGM in Kuala Lumpur.

According to Abdul Farid, the bank disbursed a total of RM12.2 billion in housing loans in 2018, while its approval rate for mortgages for eligible bachelors as at March 2019 stood at 80% against the entire industry approval rate of 70%.

He said the group's mortgages segment — including residential and non-residential — comprised RM87.5 billion as at end-December 2018, while its total loan book including global operations amounted to around RM500 billion.

"We will also disburse about RM35 billion over the next three years on the SME side," Abdul Farid said, adding that the group's SME business comprises both retail SMEs and business or commercial banking.

Under its SME loans segment, the bank's retail SME financing currently stands at around RM17.1 billion, while the business banking side constitutes RM24 billion.

As per the group's financial results for the year ended Dec 31, 2018 (FY18), the lender's gross loans climbed 4.8% year-on-year to RM517.3 billion.

Loans from its local operations rose 4.8%, while Singapore grew 4.5%, Indonesia climbed 7% and other international markets increased by 10.9%.

On Bank Negara Malaysia's (BNM) proposed an additional capital requirement for domestic systemically important banks (D-SIBs), Abdul Farid said the element has already been factored into the group's capital expectations.

BNM last week held a public consultation on its proposed framework, of which banks designated as D-SIBs will need to maintain an additional capital buffer of 0.5% to 1% of common equity Tier 1 (CET1) capital relative to risk-weighted assets on a consolidated group basis.

"What was issued, was already within our expectations," Abdul Farid said, adding that the bank's present capital buffers are already adequate.

Credit rating firm Moody's Investors Service Inc had said the proposed additional capital requirement would be credit positive as it would increase Malaysia's largest banks' ability to absorb potential shocks and enhance banking system stability amid challenging operating conditions.

The firm also said the country's six largest banks, which it viewed as likely to receive the D-SIB designation, would comfortably meet the higher capital requirement without needing to raise additional capital as these banks currently maintain capital buffers well above the new minimum regulatory capital levels.

The CET1 capital ratios of all six banks were more than 300 basis points above the 8% minimum CET1 ratio (including a 1% D-SIB capital buffer) as at end-2018.

Shares of Maybank closed two sen or 0.22% lower at RM9.26 yesterday, giving the country's largest bank a market capitalisation of RM102.32 billion. The stock saw 9.16 million units traded.