Krungsri (Bank of Ayudhya PCL) announced its performance of commercial banking business with a 4.8% growth in loans to the large corporate segment in the second quarter of 2017 and maintained its growth target at 5% for the whole year. With an aim to be a top tier bank in commercial banking, Krungsri will continue to expand its customer base to meet rising demand for lending and working capital from the business sector and provide a wide range of financial services, underlining Krungsri’s unique capability to combine its Thai Expertise with Global Strength of Mitsubishi UFJ Financial Group (MUFG).
Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said “Loans to Thai corporates posted stronger growth in the second quarter after Thailand’s economy showed clearer signs of recovery in exports, tourism and government’s spending. Recently, Krungsri has developed our expertise in response to customer demand and strengthened our good relationships with them as part of our plan to become a trusted bank for the business sector. We offer total financial solutions and support our customers in expanding their businesses by leveraging Krungsri’s and MUFG’s networks. We also provide advisory services, business matching services, and financing such as project finance and bridge loans to customers who want to expand business overseas.”
In the first half of 2017, our Thai corporate loan portfolio registered more than 600 billion baht, accounting for 44% of total portfolio, 29% of which was from the large corporate segment and the remaining 15% was from small and medium enterprises (SMEs). Lending to the large corporate segment increased almost 2% from the end of 2016, reflecting a positive signal for the Thai economy amid challenging business environment.
“For the business outlook in the second half, lending to the large corporate segment and SMEs will continue to grow. We maintain our loan growth target at 5% for large corporate customers, driven by improving economic recovery and strong exports, underpinned by better global economic outlook. For domestic factors, the government’s tourism promotion measures should encourage demand for funding from several sectors such as building materials, retailers, automotive and real estate businesses. We also expect more companies to mobilize funds from the debt market to finance their business expansion as the economy picks up. Thus, Krungsri is committed to providing new products and services to serve demand of existing customers and tap into new ones. We also give priority to technology change to support the National E-Payment master plan. This is a good opportunity to help our corporate customers develop their competitiveness and offer new financial services that are in line with the digital trend, as well as Supply Chain Financing Program to improve the efficiency of their business network. Leveraging MUFG’s global network, Krungsri has strong capability to support our customers’ business expansion through knowledge sharing, advisory services, seminars and networking activities. Krungsri has continuously arranged networking activities and business trips, including a recent business trip to explore construction and consumer product markets in Myanmar. Bracing for Thailand’s aging society, Krungsri plans to arrange a business trip to share insights about life-care business opportunities in Japan, where expertise in this particular field is outstanding,” Mr. Pornsanong added.