Bangkok--30 Jul--KASIKORNBANK
Kasikorn Leasing’s 1H13 performance showed new loans totaling 37.76 billion Baht, while the company’s target groups for the second half of this year will be those buying pickup trucks and big bikes. Relevant promotional campaigns will be launched to meet customer demand.
According to KLeasing Managing Director Mr. Akaranant Thitasirivit, the company’s first-half performance showed new loans amounting to 37.76 billion Baht. The company’s outstanding balance totaled 84.94 billion Baht, or 87.75 percent of the target of 96.79 billion Baht, while its non-performing loans stood at 0.82 percent. KLeasing’s earnings for the first half of this year totaled 232 million Baht, while its net profits after loan loss provision amounted to 140 million Baht. The provision has been set as a proactive move to cope with current economic conditions and possible impacts on customers in the future.
Given that the automotive industry is likely to experience a slowdown in the second half of this year, KLeasing will focus on customers buying pickup trucks, larger vehicles for business transportation, and medium-sized vehicles, all of which are in high demand. The company will also tap the fast-growing big bike market as new models have recently been launched by several brands.
Together with car and motorcycle makers, KLeasing recently introduced an auto financing package with special interest rates in response to the demands of customers in diverse groups. The “K Auto Finance: Own a car? Never be short of cash!” program offers the lowest effective rate at 7.48 percent on vehicles of any make, one to 17 years old, and installments up to 72 months. There is no fee charged and no guarantor required, while prepayment is allowed.
Mr. Isara Wongrung, Executive Chairman of KLeasing, quoted Kasikorn Research Center’s projection that car sales in the second half of this year will be sluggish due to expiration of the first-time car buyer program. Car sales will be slower, given that 20 percent of car reservations have been cancelled, and car acceptance postponement has affected another 10-20 percent. However, promotional campaigns for the launch of new models will help restore total car sales for this year to 1.22-1.29 million units.
Apart from the first-time car buyer program, used car sales and pricing for the second half of this year will also be largely impacted by the eco car penetration into the market and aggressive new car promotions by car dealers amid the market slowdown.