State-owned Islamic Bank of Thailand (IBank) aims for 80% net profit growth in 2019 after turning a profit for the first time in five years this year.
The bank expects to post an operating profit of 600 million baht and a net profit of 590 million in 2018, president Wuttichai Suraratchai said, adding that IBank's net profit next year is targeted to hit 1.08 billion baht.
IBank aims for loans outstanding to grow by 12.5 billion baht next year, up from 8 billion this year, Mr Wuttichai said.
Both Muslim and non-Muslim customers are the bank's targets, he said.
IBank caps lending to non-Muslim borrowers at 500 million baht each.
IBank is one of seven state enterprises forced into business rehabilitation after accruing high non-performing loans and net losses.
The other six are Thai Airways International, the State Railway of Thailand, the Bangkok Mass Transit Authority, TOT Plc, CAT Telecom and the Small and Medium Enterprise Development Bank of Thailand.
SME Bank exited its rehab plan after earnings turned a corner.
Mr Wuttichai said IBank's non-performing financing (NPF) is expected to fall below 9 billion baht by the end of 2018 from 11 billion baht now.
NPF is set to make up less than 5% of loans outstanding in the next few years, down from 19-20% at the moment.
The bank has been on the path to recovery after transferring NPF worth 50 billion baht to Islamic Bank Asset Management Co Ltd, which is wholly owned by the Finance Ministry, in return for 22 billion baht in promissory notes.
The bank over the next three years will focus on restructuring loans extended to troubled debtors who still have repayment ability, Mr Wuttichai said, and it will take legal action against those who can no longer negotiate.
IBank's capital adequacy ratio (CAR) is expected to swing back to positive next year on the strength of improving operating performance, he said.
Although the Finance Ministry pumped fresh funds worth 18.1 billion baht into the bank through a recapitalisation, CAR is still negative to the tune of 1 billion baht.
Upon the capital increase, the Finance Ministry's shareholding increased to almost 100% from 48.5% before the recapitalisation.
Mr Wuttichai said IBank will launch a mobile banking app next year.
Meanwhile, IBank chairman Pornlert Lattanan estimated that the bank's capital buffer will reach the Bank of Thailand's minimum requirement of 8.5% of risk-weighted assets within the next five years.
It will happen faster, however, if the bank manages to seal a partnership deal, Mr Pornlert said.