Bank of Ayudhya estimates that its mortgage portfolio by the end of the year will include around Bt36 billion new loans.
Combined with current outstanding home loans, Krungsri’s total mortgage portfolio will be about Bt120 billion, an increase of 18 per cent over last year. The growth is a result of strategic cooperation with property developers, combined with customer quality, project quality and a responsible lending approach, the bank says. It is confident of continuous growth next year.
Wichit Phayuhanaveechai, executive vice president for mortgage loan products, said the new home loans granted this year were estimated to total Bt36 billion, higher than the Bt28-billion target. The default and non-performing-loan (NPL) ratios have decreased, reflecting the bank’s policy of lending with responsibility, together with a loan-management approach that focuses on quality of customers and of property projects, he said.
Of this year’s new mortgages, 31 per cent are for condominiums and 41 per cent for detached houses.
The bank’s over-30-day delinquency rate has declined to 2.42 per cent of credit outstanding, while NPLs, which hit 1.65 per cent last year, are down to 1.29 per cent, a decrease of 22 per cent.
The latest Bank of Thailand data as of September indicated that the NPL rate for the overall property market was 4.57 per cent.
Wichit said that overall, the real-estate industry would maintain growth of about 8-10 per cent amid declining concerns about a bubble. Also, property developers are being more cautious about investment expansion, creating balance in the market.