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CIMBT targets 5 per cent expansion in retail loans next year

CIMB Thai Bank (CIMBT) has said that the bank has set a target for retail loans in 2021 to expand from Bt138 billion to Bt145 billion, or 5 per cent.



Tan Keat Jin, deputy Head of Consumer Banking, said this year loans in this category contracted by 1-3 per cent due to the impact of the Covid-19 outbreak.

“We expect loans for buying houses and used cars to grow significantly next year as in the second half of this year the demand in these categories has been continually rising,” he said.

“Currently home loans are accountable for 60 per cent of total retail roans, while used-car loans take up 30 per cent.

“Used-car loans have higher profit margin at around 6-7 per cent compared to loans to buy new cars at only 1-2 per cent,” he added.

Tan added that next year CIMBT expected to keep the amount of non-performing loans (NPLs) at a suitable level, as he believed the economy would start to recover provided the new Covid-19 outbreak is limited to only some provinces.

“One of our missions is to provide borrowers with moratorium and debt restructuring service to prevent them from becoming NPLs,” he said.

“Statistics show that after the repayment suspension, up to 70 per cent of customers were able to continue repaying their debt, while 20 per cent are still in need of additional assistance. We hope to reduce this number down to 5-10 per cent next year.”

CIMBT also targets up to 25 per cent expansion in fee from its wealth management services, which it has developed into a digital wealth management platform to provide customised services to its ‘CIMBT Preferred’ and private banking customers.

Published : December 25, 2020