KBank sees 12% Q1 jump in large corporate loans

The increase was credited to high growth in the corporate customer segment in line with economic improvements and outstanding export performance. 
The main drivers were borrowing requirements in the export-oriented industry, agriculture and construction. 
Payments via EDC also rose 20 per cent, due mainly to Chinese tourists’ spending and expansion of Thailand’s cashless society.
KBank president Patchara Samalapa said the operations of the bank’s Corporate Business Division expanded in 1Q18 at a higher rate than expected, given the increase in large corporate customers’ requirements for loans and capital funds to finance their activities. 
The division’s income totalled Bt6.371 billion, rising 5 percent over-year, and fee income stood at Bt3.117 billion, up 3 per cent YoY. 
Meanwhile, total loans surged 12 per cent YoY to Bt581.58 billion, mostly driven by farm and agricultural processing industries that benefited from the healthier global economy. 
Consequently, KBank’s global trade transactions also registered outstanding performance.
Other industries that exhibited outstanding growth in 1Q18 included construction and construction materials, following many government projects that are progressing. 
KBank has been able to control non-performing loans in the large corporate segment within its targeted range.
KBank’s large corporate customers have also raised funds in the form of private bond issuance. In 1Q18, KBank was top of the market with the total value of issued private bond at Bt45.662 billion, equivalent to a 24 per cent of market share.
Patchara said large corporations have the same cash management costs as banks, and if such costs are reduced, their business efficiency can be enhanced substantially. 
As a result, KBank has decided to develop solutions related to the cashless society to meet the needs of this customer segment. Over the years, KBank has steadily introduced new features to its EDC devices via QR codes that are capable of accommodating the Alipay and WeChat Pay apps used by Chinese tourists.
“Thanks to the satisfactory growth of business in 1Q18 and steady expansion of the cashless society in Thailand, KBank is confident of continued support for our customers according to our targets, with an overall loan growth of 6-8 per cent and a rise of fee income by 2-5 per cent,” he said.