GHB remains upbeat despite poor numbers
Government Housing Bank (GHB) data show its net profit fell and non-performing loans rose in the first quarter, but the bank still vows to promote more attractive loans to its clients.
President Khan Prachuabmoh yesterday said a meeting with Finance Minister Chalongphob Sussangkarn tomorrow would focus on cutting the bank's mortgage rate. Chalongphob will meet with executives of state-owned banks - or "specialised financial institutions" - tomorrow to discuss ways in which these banks can lend more to small- and medium-sized firms and low-income groups, in order to prevent the economy from slowing down any further. Khan said he had not yet decided how much mortgage rates should be cut. However, the GHB will offer a fixed rate for three-years to new home-buyers. It will also offer zero interest for the first year of mortgages for buyers of its resale houses, to be offered at Money Expo at Queen Sirikit National Convention Centre from May 10-13. Khan suggested the government place priority on boosting the property market rather than other sectors of the economy. Meanwhile, the GHB announced its first-quarter performance yesterday. Its net profit dropped 64.88 per cent to Bt309 million, which Khan said was caused by the bank's policy of maintaining lower interest rates to support lower-income groups in owning houses while offering higher deposit rates to attract depositors. The bank also had to increase its reserves against loan loss, in order to meet the Bank of Thailand's new accounting standard, Khan said. The bank made new loans worth Bt22.52 billion in the first quarter, down from Bt29.97 billion in the same period last year, as home-buyers opted to wait for economic stimuli and showed little confidence in the economy. The GHB's non-performing loans totalled Bt33.19 billion in the first quarter, or 6.09 per cent of total loans, up about Bt5 billion year on year, due largely to the economic slow-down. The bank sold non-performing assets (NPAs) worth Bt412 million in the first quarter, making the current value of its total NPAs Bt10.94 billion, Khan said. The bank's total assets were Bt615.16 billion at the end of the first quarter. Its outstanding loans amounted to Bt566.83 billion and total deposits Bt458.9 billion.
Wichit Chaitrong The Nation
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