Muangthai Capital Plc (MTC), the SET-listed provider of vehicle and personal loans, aims to grow its lending portfolio by 20% this year to 170 billion baht and curb non-performing loans (NPLs) at 3.2% of the total portfolio.
Deputy managing director Parithad Petampai said the company targets improving consumer access to financial resources through MTC's 7,600 branches nationwide and developing service innovations through generative artificial intelligence (AI) to attract more customers.
"We will focus on increasing lending across all products by using generative AI to lift service quality to international standards," he said.
The company wants to limit NPLs to 3.2% this year from 3.5% in 2023, with the debt service ratio improving for most customers in line with improving economic conditions.
"Thanks to the Bank of Thailand keeping interest rates unchanged and the debt restructuring of 1% of our total portfolio, our net interest margin [NIM] remains stable," said Mr Parithad.
"However, as interest rates are on a downtrend trend, the NIM will improve this year."
MTC has bonds that will gradually mature this year of totalling 25 billion baht and it plans to issue new bonds to replace the existing tranches that have matured.
In addition, the company has credit lines from both domestic and international financial institutions that can be used to repay the maturing bonds.
"As a result, we do not have any problem with bond repayment this year. MTL will keep track of financial stability and maintain good liquidity", he said.
"The company is committed to raising the level of credit services to be a source of funds with international microfinance standards."
Through cooperation with the Japan International Cooperation Agency and Deutsche Investitions- und Entwicklungsgesellschaft, MTC targets mobilising financial resources for people with good governance and protecting rights and interests to meet customers' expectations, said Mr Parithad.