GHB expects Bt1 trillion in loans by 2019
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Government Housing Bank targets double-digit annual growth through 2019 to reach outstanding loans of Bt1 trillion by that year, president Angkana Chaimanat said. She added that up to 51 per cent of new mortgages throughout that period would be for lower-
As of September 30, GHB had outstanding loans of Bt778.63 billion. It approved Bt103.39 billion worth of mortgages in the first nine months, up 13.4 per cent from the same period last year.
In that period, 46.98 per cent of new mortgages were for the low-income market, with home loans not exceeding Bt1.5 million per acc-ount. There were 72,797 new accounts in this category, totalling Bt48.57 billion. Some 55 per cent of new mortgages were for people upcountry, and the rest in Bangkok and its suburbs.
As it plans a 51-per-cent proportion of new mortgages for the low-income market, GHB will provide loans for customers of the National Housing Authority, which targets building Bt48 billion worth of homes next year in the Bt400,000-to-Bt1.5-million price bracket, she said.
GHB reported net profit of Bt7.37 billion in the first nine months of this year, up 18.54 per cent from the same period of 2013.
“We believe our net profit will achieve our full-year target of Bt8.56 billion,” Angkana said.
The demand for new mortgages this quarter has continued to grow thanks to the recovery of the economy and the property market. However, whether interest rates rise will depend on market sentiment, she said. GHB recorded non-performing loans of Bt46.62 billion in the first nine months, or 5.99 per of the total. That was down from 6.12 per cent as of the end of 2013. The bank reported non-performing assets worth Bt1.6 billion as of September 30, down 3.67 per cent from a year earlier.
The bank recorded outstanding loans of Bt778.39 billion as of September 30, up 5.73 per cent year on year, and a capital-adequacy ratio of 16.72 per cent, well in excess of the Bank of Thailand’s target of less than 8.5 per cent. GHB recorded total assets of Bt824.49 billion and total deposits of Bt650.52 billion as of September 30, up 7.60 and 8.44 per cent respectively from a year earlier.
Angkana said that as of October 13, the bank had 7,175 applications worth Bt1.67 billion awaiting approval, for such things as renovations or new furniture. There were 4,689 new mortgage applications worth Bt6.12 billion. As a result, GHB should approve new mortgages of Bt134 billion this year.
