CIMBT braces for flat SME loan growth
CIMB Thai Bank is concerned that the economic crises in the United States and Europe will have an impact on its lending to small and medium-sized enterprises, and as a result its SME lending may not see growth next year as it has this year.
Surachai Chitratsenee, CIMB Thai senior executive vice president for SME banking, said
yesterday that the bank had increased the proportion of SME loans this year to 50 per cent from 20 per cent and its outstanding loans by year-end should be Bt28 billion.
However, the momentum for loan growth next year might not be as aggressive as this year because of the impact from the European and US economic downturns.
The bank will incorporate the impact of the global economic situation into its business plan next year, he said.
SMEs that export to the European market in the CIMBT portfolio are not many, but the bank will assess the impact in one or two months before determining whether this could seriously affect SME customers, he said.
If the export volumes decline or there is a delay in the transfer of money from customers of SMEs, including a drop in the number of European tourists this high season, it will be proof that Thailand has been hit by the global economic crisis, Surachai said.
SME loan growth next year might see flat growth as the number of cross-border customers between Thai SMEs and those in the region is increasing.
“We have a few customers who have offshore investment in the Asean region. However, cross-border trade will grow significantly in the near future,” he said.
CIMBT, in cooperation with its parent bank in Malaysia, is approaching both Thai and regional SMEs to invest in each other.
Malaysian investors in the CIMBT portfolio are involved in the electronics, gypsum, furniture and hotel businesses.
About 80 per cent of the SME loan portfolio comprises medium-sized businesses with annual sales revenue of Bt50 million to Bt400 million.
The rest are small enterprises with annual sales revenue of no more than Bt50 million.
CIMBT offers loans of between Bt200 million and Bt300 million per operator.
