KBank pushes corporate loans

KBank pushes corporate loans

Kasikornbank (KBank), the country's fourth-largest lender by assets, expects 4-7% growth in corporate lending and a 15% increase in fee-based revenue from such loans next year amid an improving economic outlook.

The bank has set a wide range for its corporate-loan growth target as it depends on the government's expected investment of 250 billion baht in infrastructure, executive vice-president Vasin Vanichvoranun said yesterday.

The target is also based on an assumption of the country's economic growth reaching 4% in 2015.

KBank expects its corporate loans will expand 5% and wholesale banking fee-based revenue will surge 10% this year.

Corporate cash management will be the key growth area for fee revenue, so the bank plans to increase its market share, Mr Vasin said.

The bank also expects to provide a full range of transactional banking services next year to be another driver for its fee revenue growth.

Two major investment banking deals that are in the pipeline will also support KBank's fee-based revenue next year.  

Trade finance and hedging services, particularly foreign exchange, interest rates and commodity prices, are expected to be positive next year because of the global economic rebound despite several uncertainties.

KBank expects to increase non-interest revenue from wholesale banking by 1% this year, increasing the ratio to 45% of the business's total revenue by the end of this year.

"Providing financial solutions by any instruments, especially through capital markets, in line with customers' requirements would help to support the growth of the bank as well as its customers," Mr Vasin said.

KBank is the first bank in Thailand to introduce an electronic domestic letter of credit in a move to promote operational efficiency among businesses bracing for intense competition after Asean Economic Community integration.

Among its first clients is Siam Yamato Steel Co, Thailand's leading manufacturer of hot-rolled structural steel.

With the new service, companies will be able to save time and costs in document preparation, reception and delivery while being able to monitor their document status through the electronic letter anywhere, any time.

KBANK shares closed yesterday on the Stock Exchange of Thailand at 233 baht, up one baht, in trade worth 744 million baht.

Do you like the content of this article?
COMMENT