Thai Bank of Ayudhya aims 30 pct growth in new home loans this year (updated)

Krung Thai Bank PCL

08/09/2016 10:00

* New housing loans almost double in H1 
    * Expects loan demand to recover in H2 
    * Industry's outstanding housing loan seen up 8-10 pct in 
2016 
 
 (Adds details, comments about H2) 
    By Manunphattr Dhanananphorn 
    BANGKOK, Sept 8 (Reuters) - Bank of Ayudhya Pcl  BAY.BK , 
Thailand's fifth-largest lender, said on Thursday it aimed for a 
growth of 30 percent in new housing loans this year at 65 
billion baht ($1.87 billion) on the back of strong demand from 
home buyers. 
    The bank aims to provide new mortgage loans of 50-70 billion 
baht a year over the next few years, Executive Vice President 
for mortgage loan Nathapol Luepromchai said at a news 
conference, adding that government spending on infrastructure 
projects and rising farm income should help boost demand for 
housing products.  
    Household debts incurred under the government's first-car 
scheme, which ended a few years ago, will gradually reduce and 
that should boost purchasing power by September-end, he said. 
    The number of condominiums' transfer to buyers is likely to 
increase in the second half, which should boost loan demand.  
    Bank of Ayudhya, controlled by Japan's Mitsubishi UFJ 
Financial Group (MUFG)  8306.T , is the third-biggest mortgage 
loan provider with a share of 10 percent in the first half of 
2016, Nathapol added. 
    The bank's rating was raised from last year's fourth 
position after its new housing loans soared 95 percent in the 
first half with outstanding loans rising 12.7 percent to 180 
billion baht, Nathapol said.                  
    Bank of Ayudhya competes with bigger rivals such as Siam 
Commercial Bank  SCB.BK  and Krung Thai Bank  KTB.BK .  
    It has joined six leading property developers to launch 
attractive interest rate packages to lure buyers. 
    The outstanding housing loan for the total industry is 
expected to grow 8-10 percent to 3.35 trillion baht this year, 
while new loans are expected to rise 3-5 percent to about 
560-610 billion baht, Nathapol said. 
    Bank of Ayudhya posted a 21 percent rise in net profit in 
the second quarter due to a pickup in lending and strong demand 
for corporates, mortgages and auto hire purchase 
loans. urn:newsml:reuters.com:*:nL4N1A726V                  
  ($1 = 34.6900 baht) 
 
 (Writing by Khettiya Jittapong; Editing by Subhranshu Sahu and 
Sherry Jacob-Phillips) 
 ((khettiya.jittapong@thomsonreuters.com; 66 2 648 9728; Reuters 
Messaging: khettiya.jittapong.thomsonreuters.com@reuters.net)) 
 
Keywords: BANK AYUDHYA LOANS/