BANGKOK: Bangkok Bank Pcl, Thailand's top lender by assets, said on Tuesday it aimed for a loan growth of 3 percent to 5 percent this year versus 1.7 percent last year, on expectations of improved borrowing demand across all business sectors.
The bank based its forecast on the assumption that the Thai economy would grow 4 percent this year, Bangkok Bank President Chartsiri Sophonpanich told reporters.
"We don't expect to see a strong recovery in the first quarter, but more growth is likely to come in the second half after the government starts spending on infrastructure projects," Chartsiri said.
Bangkok Bank's loan target is lower than its peers. Third-ranked Siam Commercial Bank aims for a loan growth of 5-7 percent this year, while fourth-ranked Kasikornbank Pcl has set a target of 8-9 percent.
The Thai banking sector is expected to see a recovery in loan growth this year after a slowdown last year, when it was hit by weak exports and lower spending after months of domestic political unrest.
Analysts expect the sector's loan growth around 5-7 percent, versus about 3-4 percent in 2014, boosted by an improving economy and the government's planned spending on infrastructure projects.
Bangkok Bank's lending grew 2.3 percent in its four quarter, the highest increase in four quarters, boosted by loans to corporate, small-to-medium sized businesses and consumer sectors.
The bank also aimed to contain non-performing loans at 2.1 percent of total loans this year, the same as 2014, and expected its net interest margin to remain stable at 2.37 percent, Sophonpanich said.
Last month, the lender reported a 14 percent rise in fourth quarter net profit due to higher loan growth, rising fee income and lower provision expenses, but missed analyst estimates.
Bangkok Bank shares have fallen 2.3 percent in the past one month, compared with a 5.7 percent rise of the Thai index. Its shares were up 1 percent in mid-morning trade on Tuesday.
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