By THE NATION
SME credit is expected to grow 1-3 per cent and corporate loans 2-4 per cent.
Non-interest income is expected to fall 5-17 per cent as a result of the new TFRS9 accounting standard, a high base effect of income earned from sales of securities, and a slowdown in the insurance business.
At the same time, the non-performing loan ratio is expected to rise to between 3.6 and 4 per cent amid the economic slowdown.
KBank has fine-tuned strategies for NPL management by keeping under its own management the portion that are expected to see a higher long-term recovery rate.
KBank president Kattiya Indaravijaya said the bank is using smart data to offer a personalised lending experience and achieve fair risk-adjusted returns.
It has also proactively identified potential risks and established loss prevention and detection.
The bank will continue to explore new growth opportunities in the region, she added.
Moreover, it has expanded its data analytics capability to enhance business opportunities and operational efficiency.
Kattiya said KBank equips all employees with essential skills to bolster their capabilities and agility.
President Predee Daochai said KBank has adopted a set of financial security measures to maintain financial health and customers’ deposits and investments. One of those measures is to steadily maintain its capital and liquidity at levels above the regulatory requirements.
Currently, KBank’s capital adequacy ratio (CAR) is at 19.6 per cent, accounting for 171 per cent of the regulatory requirement, while its liquidity coverage ratio (LCR) is 188 per cent of the requirement.
The bank has carried out stress tests on economic scenarios and new regulations while devising and testing contingency plans for the supervision of its capital and liquidity on a regular basis.
It has also bolstered its capacities in data analytics and management to better understand its customers and their risks.
KBank has installed both transaction and application-fraud monitoring systems, as well as an internal fraud monitoring system, worth over Bt500 million. Its fraud-to-sales ratio has steadily improved.
This year KBank plans to give cybersecurity and customer data privacy top priority and use AI and machine learning to track cybercrime and cyber-risk.
President Patchara Samalapa said consumers have increasingly migrated to digital banking services, as evidenced by the number of transactions via its mobile application K Plus, which have risen by over 200 per cent in the past three years.
However, the number of transactions at branches remains high – topping 100 million.
KBank has thus focused mainly on multi-service channels so as to offer customers services via multiple channels and platforms, as client convenience holds the first priority.
To meet multiple lifestyle needs of customers, KBank has teamed with leading business partners at both the global and national levels.
These partners include Grab, Facebook, Line, Central JD FinTech, JD Central, PTTOR, the CU NEX project, Lazada and Shopee.
KBank has also collaborated with startups such as YouTech in Singapore. Based on the “Better Together” concept, these collaborative efforts aim to develop platforms that link spending formats in each business for a seamless customer experience.
Last year, KBank introduced unsecured loan via all channels. Focus is on online lending via K Plus and platforms of KBank’s business partners.
KBank joined with Line Financial Co Ltd last year to establish Kasikorn Line Co Ltd. The company will be fully operational under the Line BK brand in the second quarter of 2020, offering unsecured personal loan on K Plus, thus allowing K Plus users, both retail customers and small business owners, improved access to small-scale funding sources with greater convenience and swiftness.
In 2019, KBank extended more than Bt36 billion in unsecured loans.
For 2020, KBank has set a target of increasing its consumer lending by Bt178 billion, representing an increase of 30 per cent over the year.