KBank sets four targets for 2015
Loan growth estimated at 9%, little changed from this year
Kasikornbank believes its loan-growth target of 9 per cent next year, almost unchanged from 8 per cent this year, is suitable for the bank and in line with the expected uptick in gross domestic product.
The target is one of four set by co-presidents Predee Daochai and Teeranun Srihong based on a strategy of customer-centricity and sustainable profitability.
The other three are net interest margin of 3.5-3.7 per cent, similar to this year’s target; non-interest income ratio of 40 per cent to total income, the same as this year; and a non-performing-loan (NPL) ratio of 2.2-2.3 per cent of outstanding loans, up from 2014’s target of 2.16 per cent.
The swell in NPLs will come after two years of economic slowdown, as in 1999, two years after the economic crisis of 1997. However, the bank considers the expected uptrend in NPLs controllable, given the customer-centric strategy.
KBank remains determined to be its customers’ main bank, so it has divided them into eight segments for products and solutions, branding and marketing, and delivering the customer experience via all channels.
The eight customer segments are larger corporate, multi-corporate, medium-sized business, small and micro-business, high-net-worth individual, affluent, middle income, and mass. The bank projects corporate loans increasing 4-6 per cent next year by defining clear customer segments focusing on businesses that have long-term investment and production bases, such as construction and materials, hardware, and automobiles and auto parts.
KBank is the leader of the SME market with a loan portfolio of Bt550 billion, which it plans to boost by 8-10 per cent next year by focusing on small and medium-sized enterprises involved in domestic consumption and international trade.
The bank is upgrading its branches in China to local banks. It will use the network in China and partner banks in Asean to support Thai SMEs venturing overseas.
Retail loans are pegged to expand 6-9 per cent by giving priority to high-yield products such as cash cards and credit cards while not playing down risk management.
All types of businesses will be offered transaction banking to ride the digital trend.
For the coming Asean Economic Community (AEC), the bank will emphasise enhancement and connectivity in the CLMV+I (Cambodia, Laos, Myanmar, Vietnam and Indonesia) in accordance with its “AEC+3 Bank” vision.
As an “AEC+3 Bank”, income from providing financial facilities to Chinese investors in Thailand is due to jump by 16 per cent to Bt471 million and, for and Japanese investors, by the same percentage to Bt1.13 billion.
The bank hopes for a 10-per-cent increase in Sino-Thai and Japanese-Thai trade transactions via its offices to Bt396.71 billion and Bt156.59 billion next year. With Asean states, KBank expects to handle 34 per cent more bilateral trade transactions to reach Bt185.57 billion in total.
KBank operates 16 overseas units including a branch in Los Angeles, one in the Cayman Islands, a locally incorporated bank in Laos, two branches and a sub-branch in mainland China, a branch in Hong Kong. It has seven representative offices in Beijing, Shanghai, Kunming, Yangon, Hanoi, Ho Chi Minh City and Tokyo.
It is arranging to set up a representative office in Jakarta and in January it will open a branch in Phnom Penh.
