Krungsri (Bank of Ayudhya PCL), announces its commercial banking business strategy for the second half of 2018 with an aim to expand portfolios for a sustainable growth of corporate and SME customers. Digital technologies and innovations are also deployed to provide total financial solutions in serving greater lending demand boosted by Thailand’s improved economy. With the synergy between Krungsri’s local expertise and Mitsubishi UFJ Financial Group (MUFG)’s global strength, Krungsri is confident to achieve its 2018 loan growth target for commercial banking at 6-8%.
Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said, “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 (EEC), 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 competitiveness and accessibility to funding.”
“Krungsri’s Commercial Banking has succeeded in building asset growth in the first half of this year with a loan growth of more than 6%. The growth was mainly driven by a continued expansion of the Thai economy and positive signs of asset quality. Non-performing loans (NPLs) of Krungsri corporate customers this year have been stable in every segment with the NPL ratio declining to 1.61% 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 materialized 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,” Mr. Pornsanong said.
Mr. Sayam Prasitsirigul, Krungsri Head of SME Banking Group said “In the first half of 2018, Krungsri SME Banking Group delivered solid performance with an outstanding loan growth of 9.2%, thanks to strong demand from medium-sized (SME-M) and small-sized enterprises (SME-S). Krungsri is committed to maximizing benefits of global networks of MUFG, as well as expanding the supply chain business to create business opportunities and expand customer base. Another bright spot was the NPL ratio of the Krungsri SME segment, which was at 3.8% at the end of the second quarter, continuously declining from the end of 2017, mainly due to an improvement in asset quality of SME-M and stabilized asset quality of SME-S. However, Krungsri continues to implement preemptive measures to control asset quality and offer financial products to minimize risks.”
The synergy between Krungsri’s local expertise and MUFG’s global strength would create business opportunities for customers through advisory and knowledge providing activities, including seminar, business journey, and business matching, which have been organized throughout the year. Combining with Krungsri’s comprehensive financial solutions, customers will grow their businesses sucessfully and expand businesses boundlessly.