Tisco seeks faster growth after buying Primus assets
- By: SOMRUEDI BANCHONGDUANG
- Published: 22/12/2008 at 12:00 AM
- Newspaper section: Business
Tisco Bank aims to post double-digit growth in its auto loan portfolio in 2009 following the acquisition of 8.5 billion baht worth of leasing assets from Primus Leasing. Oranuch Apisaksirikul, the chief financial officer of Tisco Bank, said the acquisition should result in 9-10% growth for the bank's loan portfolio next year.
''The acquisition represents a business opportunity for the bank even with the economic gloom,'' she said. ''Car sales are expected to fall significantly in 2009 with the weak economy, and it will not be easy to expand consumer loans.''
According to Toyota Motor Thailand, car sales fell 20.2% in November for the sixth straight month of declines.
Tisco on Dec 12 signed a contract with Ford Credit International, the parent of Primus Leasing, to acquire 26,600 accounts for Ford, Mazda and Volvo car owners, as well as 138 dealers.
Mrs Oranuch said Tisco did not necessarily submit the best price in the asset auction, but that its strength in the hire-purchase market was a key consideration.
Ford Credit International, a unit of Ford Motor Co, plans to divest its loans in other countries as well, as part of the beleaguered US automaker's attempt to improve its financial position.
Mrs Oranuch said the acquisition would also help Tisco expand its customer presence to Mazda owners.
The bank, with an auto loan portfolio of 71.65 billion baht, is one of the smallest banks in Thailand but is the leader in the auto loan market. Auto loans represent 73% of Tisco's total loan portfolio of 97.8 billion baht.
All 8.5 billion baht in assets are high quality with an average B grade compared with the blended quality of Tisco's existing loan portfolio.
TISCO shares closed on Friday on the Stock Exchange of Thailand at 9.00 baht, up 55 satang, in trade worth 58 million baht.
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