"During the first half, mortgages recorded a high double digit and we think this will continue for the rest of the year," head of Consumer Financial Services, Charles Sik told pressmen after the launch of OCBC Regular Premium Life Insurance Financing (LIF) facility in Kuala Lumpur yesterday.
Home loan made up about RM10 billion of the bank's RM32.6 billion gross loans outstanding last year.
The bank's gross loan outstanding increased by 5 per cent on the back of assets valued at RM53 billion as at December 2009.
Sik said that OCBC mortgage lending holds a 5 per cent market share based on outstanding balance while on new business it commands up to 6 per cent. Last year, it recorded RM10 billion in home mortgages.
Explaining the facility, he said LIF was designed for those who wish to take up a more comprehensive life insurance policy which goes beyond protection linked to the purchase of a home.
"Basically, customers do not need to come out with any money upfront, whereas in usual practice the customers need to pay premium and take loan separately from the bank," he explained.
With LIF, customers would be able to subscribe to the scheme and finance it through OCBC home loan mortgage.
Meanwhile, Great Eastern director and chief executive officer Koh Yaw Hui said LIF will be available through its 17,000 agents nationwide.
"With we are confident LIF will be both well distributed and well-received," Koh said.
Great Eastern bancassurance partnership with OCBC since January to July this year has contributed 10 per cent or RM58 million to the insurer's new business mortgage-related insurance.
"Our partnership with OCBC just started last year but we already saw 135 per cent growth in total new business premium during the period from January to July.
"And there is room to grow. This year, we expect to see contribution of between 12 per cent and 15 per cent from OCBC," Koh added.
By Business Times
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