Bangkok--10 Aug--KASIKORNBANK
KBank has revealed their 1H17 operating results, therein showing that the Corporate Business Division (CBS) has enjoyed excellent performance on large corporate business loans that have risen 8 percent. Highlighted were loans for energy, agro-processing and property sector projects. They expect the economy will continue to expand in 2H17, driven by public investment expenditures and exports that may add a 4-6 percent increase to large corporate business loans and not less than 3 percent increase to total revenue.
Mr. Suwat Techawatanawana, Executive Vice President, added that the performance of KBank's Corporate Business Division, related to large corporate customers, had been quite good as of June 30, 2017, with satisfactory growth in outstanding loans of 553.665 billion Baht, rising 8 percent YoY – from 511.700 billion Baht – and total income of 12.221 billion Baht, up 8 percent YoY, with interest income of 4.959 billion Baht and fee income 5.982 billion Baht. Industries that had recorded significant growth in 1H17 included the energy, agro-processing and property sectors. In the power sector, demand for energy – especially renewable energy – in Thailand has surged and large investments have been made accordingly. Agro-processing and property both grew with key support from food processing business and property investments via such models as REIT and debentures.
During 2H17, the Thai economy may be buoyed further by the government's investment projects that are becoming more tangible, such as the Eastern Economic Corridor (EEC) program that connects with other ASEAN states, e.g., Lao PDR, Cambodia and Vietnam, plus the first high-speed railway stretching from Bangkok to Nakhon Ratchasima with the cooperation of China per the 'One Belt, One Road' initiative, as well as infrastructural projects likely to be approved before coming general elections. Moreover, exports have fared better than expected, thanks to global economic growth; this should bode well for the Thai economy.
Mr. Suwat added that, given several brighter economic indicators and a promising trend in the business sector during 2H17, growth in large corporate loans is expected to reach their target of 4-6 percent YoY, with total revenue projected to grow by not less than 3 percent.