Higher wages boost leasing firm
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Ratchathani Leasing's new hire-purchase loans will exceed the forecast of Bt10 billion to reach Bt12 billion this year thanks to rising purchasing power.
Managing director Kovit Rungwattanasopon said yesterday that the company would not lower its interest rates even though the Bank of Thailand had cut the policy rate by 0.25 percentage point.
The company’s interest rate for new cars is 2.2-2.4 per cent and for used cars 3.5 per cent per annum, he said. If its new loans hit Bt12 billion, that will boost its hire-purchase loan portfolio to Bt18 billion this year.
Its non-performing loan-ratio in the first nine months of this year was only 2 per cent – an improvement from 3 per cent last year after the minimum daily wage was raised to Bt300, which enhanced consumers’ ability to buy durable goods and repay loans.
Demand for both new and used cars is strong, so its earnings of Bt300 million in the first nine months have already exceed its net profit of Bt200 million for all of last year, Kovit said.
