Phatra sticks to prudent growth goal
SET-listed Phatra Leasing Plc (PL) is keeping a prudent target of single-digit growth in lending next year.
Despite expectations of an improving economy and greater business opportunities, there are still uncertainties, especially the government’s looming vehicle tax, president Pipop Kunasol said.
The single-digit target is a continuation of the company’s loan growth trend over the past few years, he said.
Phatra Leasing aims for more than 5% growth in lending in 2016, underpinned by better economic circumstances following a raft of stimulus measures and improving consumer confidence, he said.
“In fact, our lending can grow at double digits, but we’re still maintaining our conservative strategy due to several uncertainties stemming from both economic circumstances and government policy,” Mr Pipop said.
Phatra Leasing managed to deliver around 5% growth in its lending year-todate, despite tepid domestic car sales. Auto leasing has felt less impact amid the lacklustre economy as a number of car users prefer leasing to buying to save money. Unlike car hire purchase, car leasing allows borrowers to return or purchase leased cars when the contract is due.
The company has a combined 11 billion baht in outstanding loans, with auto leasing accounting for more than 80% and leasing for aeroplanes, ships, machinery and equipment making up the remainder.
Phatra Leasing has expanded into leasing other products to diversify the risks.
It targets to cut the share of auto leasing in its loan portfolio to 60% in the next five years.
Apart from risk diversification, higher leasing opportunities for other products has encouraged it to expand its business scope.
The company is focusing on building and construction equipment on expectations that the government’s infrastructure investment will boost demand.
Phatra Leasing’s non-performing loans stand at a mere 0.1% of the total loan portfolio.
PL shares closed Wednesday on the Stock Exchange of Thailand at 3.54 baht, down two satang, in trade worth 11.3 million baht.