No strategic partner for LH Bank until at least 2014
Land and Houses Bank does not plan to have a strategic partner in the near future, chairman and real-estate tycoon Anan Asvabhok insisted yesterday.
“LH Bank is a small bank and our current growth is sufficient for us,” he said.
The bank’s assets stand at Bt111 billion, substantially higher than the Bt81.2 billion posted at the end of last year.
LH Bank was earlier reported to be seeking a strategic partner to help strengthen its banking business, with a deal expected to be revealed by the end of this year.
Rutt Phanijphand, chairman of the bank’s executive directors, said a partner would not now be seen either this year or next.
This is because LH Bank upgraded to a commercial bank only last year, therefore it might too early to seek a partner. It wants to ensure organic growth before considering entering into a partnership, he said.
When it does decide to make a move, LH Bank will prefer a strategic partner experienced in banking business to investors that only want to be shareholders, said the executive.
A strategic partner must reinforce fee income, which is currently the weak point of LH Bank, he added.
Bank president Sasitorn Phongsathorn said loan growth this year should reach 35 per cent, well above the target of 30 per cent thanks to LH Bank having shifted its focus to SME and corporate lending. The bank will try to maintain future annual growth at 30 per cent.
In the first nine months, LH Bank’s lending expanded 29 per cent from the same period last year.
Anan said low interest rates and the expansion of greater Bangkok’s mass-transit system were positive factors for the real-estate sector.
Land upcountry and in the outskirts of Bangkok close to mass-transit routes will become “golden land” for developers and investors, he said.
However, as low interest rates are not attractive for investors, he suggested those seeking a higher return should buy land upcountry, especially in border provinces, to cash in on the upcoming Asean Economic Community.
For those preferring to invest in the stock market, he recommended they buy defensive stocks in banking, power, food and building materials rather than real-estate shares, because the sector has many players, all of which are facing a problem of delayed delivery of homes to customers due to a shortage of manpower.
