Thailand’s Kasikornbank Pcl (Kbank) plans to invest 17 billion baht ($517 million) in technology and innovation over the next three years to boost efficiency and increase personal loans, a top executive said on Wednesday.
The plans comes as Thai bank earnings come under pressure from a slowing economy and the elimination of transaction fees.
“Amid a challenging economy and disruptive technologies … the business must quickly adjust to capture new opportunities,” President Kattiya Indaravijaya, told a news conference.
The central bank now forecasts 2019 economic growth at 2.5%, a five-year low, and 2.8% for this year as exports have slowed.
Kbank, the country’s largest lender by assets, plans to increase consumer lending by 30% or 178 billion baht this year, with more unsecured lending.
In 2020, it is targeting loan growth of 4% to 6%, with retail loans to grow up to 11% and corporate loans to growth 2% to 4%, it said in a statement.
It will roll out its joint venture with chat application, LINE, LINE BK, in the second quarter this year, which will tap into the app’s network of users.
Non-performing loans ratio to loans is expected to increase to between 3.6% to 4% due to a slowing economy, versus 2.45% at the end of 2019.
The bank reported flat net profit growth of 38.7 billion baht in 2019, from the same period a year earlier with fee and service income down 3.61%. ($1 = 30.29 baht) (Reporting by Chayut Setboonsarng; editing by David Evans)
Reuters | BANGKOK