Bank of Ayudhya (BAY) can still meet its aggressive target of 11% growth for retail loans this year, it said yesterday.
Lending expanded just 4% in the first half but Ponganant Thanattrai, head of the bank's retail banking and distribution group, is optimistic about the prospects for the whole year as mortgages often become more active in the second half.
About 60% of housing loans are extended in the latter six months of a regular year but this could also spark competition in terms of pricing and offers linked to lines of credit, Mr Ponganant said.
The bank's retail lending covers housing and personal loans. Outstanding mortgages, representing a larger portfolio than personal loans, rose 4.3% from the end of last year to 205 billion baht at the end of June.
BAY, the country's fifth-largest bank by total assets, wants to climb even higher within a few years to keep pace with its larger peers. Service quality, pricing competitiveness and innovation are its key measurements.
Mr Ponganant said the bank plans to launch the country's first online service for approving retail loans in the final quarter. At present it only allows people to apply for retail loans online.
It also aims to raise deposits from its current portfolio of 1.16 trillion baht. Deposits are expected to register growth of 7% in 2017, having already climbed 5% from the end of last year till June.
The bank will focus on low-cost current account and saving account deposits, he said.
BAY has already trimmed its financial costs by 20 basis points this year, he added.
Expanding its payroll deposit accounts with Japanese companies in Thailand is a key strategy to facilitate growing deposits, the bank said.
BAY shares closed yesterday on the SET at 36.50 baht, unchanged, in trade worth 2.52 million baht.