KKP hikes loan growth target to 15% after strong first half

SET-listed Kiatnakin Bank (KKP) expects lending to expand by 15% this year, outpacing its 10% target, after loans jumped 10.2% in the first six months.

“Our loan growth is seen across segments, including hire purchase, personal loans and mortgages,” said chief executive and president Aphinant Klewpatinond. “Moreover, inquiries for loan applications through the online channel have surged.”

Year to date, KKP’s corporate loans have soared 38.6% to 21.99 billion baht, representing 10% of the bank’s total loan portfolio. Personal loans and mortgages grew by 23.9%, commercial lending by 12.2% and hire purchase by 2.8%.

The bank earlier aimed for 5% loan growth in each half. The better-than-targeted growth could be due to KKP’s restructuring of the working process, including upgrading data analytics and risk management to help the bank focus on profitmaking activity.

KKP’s cost of funding for the first half was stable at 2.3%.

Mr Aphinant said the bank aims to lower its non-performing loan (NPL) ratio to 4% by the end of this year after it managed to bring down bad loans to 4.5% from 5% at the end of last year.

KK Phatra Smart Settlement (KKPSS), Phatra Securities’ wealth management product offering high interest rates, helped the bank raise significant funding without the additional costs of physical branches and human resources.

Phatra Securities is a unit under KKP. KKP is emphasising three main businesses — lending with a focus on products and customers who provide suitable risk-adjusted return; wealth management; and corporate loans, financial markets and investment banking — for the second half of this year.

It plans to collaborate with 10 investment banks and asset management companies to offer offshore investment service in the final quarter of the year to keep pace with demand from high-networth customers.

KKP shares closed yesterday on the Stock Exchange of Thailand at 74.50 baht, down 25 satang, in trade worth 309 million baht.