BAY aims for 11% growth

Bank of Ayudhya (BAY) seeks aggressive retail loan growth of 11% this year, largely from mortgages, auto loans and microfinance.

The country’s fifth-largest lender by assets targets retail loans outstanding of 716 billion baht in 2017, said Dan Harsono, head of retail and consumer banking.

To achieve the retail loan growth, the bank projects mortgage growth of 10-11%, auto loan growth through Krungsri Auto of 10%, unsecured loan gains through Krungsri Consumer of 7-8%, auto refinancing growth via Ngern Tid Lor of 22% and microfinancing growth in Laos through Hattha Kaksekar of 11%.

This year’s loan growth target is below last year’s 15.9% uptick, but is reasonable given the country’s economic growth forecast of 3.2%, he said. A higher base effect from last year also contributed to the smaller growth target.

The bank wants to continue to expand business in regional markets, focusing on Cambodia, Laos, Myanmar, and Vietnam. In Laos, it plans to open a new branch in Pakse by June this year and expand its auto refinancing brand, Car4Cash, in the country.

BAY also is offering l easing l oans through its venture capital firm, Krungsri Leasing Services, which has one branch in Vientiane.

The bank wants to wait for clearer regulations for foreign businesses in Myanmar, while it is studying the Vietnamese market where there is strong competition.

Mr Harsono said BAY expects 5% feebased income growth in retail banking this year, down from 11.7% last year, because of the government’s national e-payment scheme. However, the platform will help the industry cut operating costs greatly and open up chances to capture new customers.

BAY shares closed yesterday on the SET unchanged at 39.25 baht in trade worth 2.19 million.