Banking Sector -Overweight

May-07 stats: Loan growth dips to 8.7% y-o-y

Loan growth dipped to 8.7% y-o-y and 2.7% q-o-q in May-07, still at the highest point prior to achieving 10% y-o-y growth the last two months.

Despite that, acceleration in growth continued for consumer loans at 4.7% y-o-y and 1.7% q-o-q (Apr-07: +4.2% y-o-y; +1.4% q-o-q), with housing loans growing their highest at 5.9% y-o-y and 2.7% q-o-q (Apr-07: +4.8% y-o-y and +1.9% q-o-q). Construction loans continued double-digit growth at 19.0% y-o-y and 8.8% q-o-q (Apr-07: 26.7% y-o-y and 8.7% q-o-q).

Deposits continued their pace at 24.7% y-o-y and 6.9% q-o-q, slightly slower than Apr-07 which grew 26.3% y-o-y and 7.7% q-o-q. Meanwhile, LD ratio was marginally lower at 67.1% from 67.9% the previous month.