Krungsri confident of hitting loan growth target of 6-8% for commercial banking

Corporate August 27, 2018 18:15

By The Nation

Krungsri (Bank of Ayudhya) on Monday announced its commercial-banking business strategy for the second half of this year, during which it aims to expand its portfolios for the sustainable growth of both corporate and SME customers.



 

 

 

Digital technologies and innovations are also being deployed to provide total financial solutions in serving greater lending demand boosted by Thailand’s improved economy, the bank said. 

With the synergy between Krungsri’s local expertise and its parent Mitsubishi UFJ Financial Group’s (MUFG) global strength, the bank is confident it will achieve its 2018 loan-growth target for commercial banking at 6-8 per cent, said Pornsanong Tuchinda, Krungsri’s head of commercial banking.

“Lending demand from commercial-banking customers is likely to increase amid optimism that the overall economy is expected to grow further in the second half, driven by strong exports, tourism and public investments. The major catalysts for loan growth this year and next year will come from industries related to infrastructure projects, those related to investments in the Eastern Economic Corridor, export-oriented and tourism-related sectors, as well as business expansion at home and abroad. 

“Another supportive factor is the government’s measures to increase SME [small and medium-sized enterprise] competitiveness and accessibility to funding,” he explained.

“Krungsri’s commercial banking has succeeded in building asset growth in the first half of this year, with loan growth of more than 6 per cent. The growth was mainly driven by a continued expansion of the Thai economy and positive signs of asset quality. 

“Non-performing loans of Krungsri corporate customers this year have been stable in every segment, with the NPL ratio declining to 1.61 per cent at the end of the second quarter. As for the business plan for the rest of this year, Krungsri is forging ahead with the goals to become a trusted banking partner for large corporates and a main operating bank for SMEs. 

“The plan can be materialised through collaboration with MUFG in leveraging its networks to facilitate credit extension, and provide financial support to Thai customers who invest overseas and foreign investors who want to invest in Thailand, as well as business-matching activities and joint investments between Japanese and Thai businesses, especially in the property development industry,” Pornsanong said.

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