Bt50 billion target 'in reach'

President Pinyavat Chantrakan-tanond said last week that according to the five-year plan that runs to 2015, outstanding loans must reach Bt50 billion.

However, after the company adjusted its strategy midyear to provide a full range of leasing products, lending showed skyrocketing growth.

In the first nine months of this year, KTB Leasing’s outstanding loans have increased to Bt26 billion-Bt27 billion.

Before moving to universal |leasing, the company had focused |on hire purchase lending, financial leasing and auto maintenance |leasing mainly to vehicles. It also |was involved in consumer finance, such as home appliance instalment loans.

Now it can expand lending to larger products including aircraft. Consumer finance was also extended to SMEs and larger companies from individuals and state enterprises.

Thanks to the broader network of 1,000 branches of Krung Thai Bank, its parent, KTB Leasing can tap customers nationwide.

This year, KTB Leasing’s outstanding loans are expected to rise by 70-80 per cent to Bt32 billion from Bt17.50 billion last year and its net profit is estimated to reach Bt290 million. Its non-performing loans are projected to account for 1 per cent of outstanding loans.

Its loan portfolio is 85 per cent auto loans and the rest is hire purchase loans for SMEs, which includes aircraft leasing.

Hire purchases for aircraft showed impressive results thanks to aggressive marketing. Aircraft loans have surged to Bt2 billion presently from about Bt400 million last year.

The company is preparing its 2013 business plan for its board of directors and Krung Thai Bank. Although the bank’s management team has changed from the new leadership, KTB Leasing’s business plan remains unchanged.

Even though the company has no plan to acquire related businesses, KTB Leasing welcomes partners that want to offer to sell their business, he said.