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Published on September 13, 2007

He said the bank's lending would grow by more than 8 per cent, the lower end of a full-year target of 8-13 per cent and representing from Bt50 billion to more than Bt70 billion in new loans. Prasarn earlier said his bank's lending growth might not reach 8 per cent.

The bank's lending has increased in small and medium-sized enterprises (SMEs) and consumer finance.

Although the bank's lending has moderated, due to political and economic uncertainties in the first half of the year, the environment has improved in the second half. Seasonal factors have also supported lending, particularly SME and consumer loans, he said.

In the first eight months this year the bank's SME loans grew 7 per cent to Bt280 billion worth of outstanding loans. The bank expects this to increase to Bt300 billion this year, up 20 per cent from last year in terms of new lending.

The bank's retail finance business, particularly mortgage and auto loans, has been growing, even though the auto industry has slowed down. Kbank's housing loans are expected to increase Bt24 billion, far higher than the target of Bt18 billion after the bank made new loans of Bt13 billion in the first half of the year.

Kbank subsidiary Kasikorn Leasing (K-Leasing) has achieved its business target, with outstanding loans of Bt20 billion, ranking No 3 in the market at the same level with Ayudhya Capital Leasing of Bank of Ayudhya. K-Leasing had earlier aimed at reaching the No-3 position next year in terms of market share.

Recently, two other large banks - Krung Thai Bank and Siam Commercial Bank - reported they did not expect to reach their loan-growth targets this year, due to the country's economic gloom. Their loan growth targets were set at 6 per cent and 20 per cent, respectively.

Somruedi Banchongduang

 The Nation