BANGKOK: The Thai unit of Malaysian bank CIMB Group Holdings Bhd said on Tuesday it would miss its 15 percent loan growth target for this year due to weak economic growth, and forecast even slower loan growth in 2015.
Loans grew 6.9 percent in the first nine months of 2014, when the bank set aside 5.7 billion baht in loan loss provision, Narongchai Wongthanavimok, senior executive vice president at CIMB Thai Bank told reporters.
"The economy has not recovered fully, prompting many clients hesitate to spend more," Narongchai said after the bank reported a 34 percent fall in its third quarter net profit to 275 million baht ($8.54 million). He did not give a new forecast for loan growth this year.
Non performing loans (NPLs) were higher in the third quarter at 3.3 percent of total loans versus 2.5 percent at the end of 2013.
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