Kasikorn Leasing announced its performance for 2018, with loan disbursements reaching 105.644 billion baht and a profit of 1.402 billion baht, responding to the highest car sales market in five years. Moving into 2019, the company is preparing to launch aggressive campaigns, leveraging the strengths of its service network and customer base from Kasikorn Bank, while expanding online service channels and developing digital platforms to provide comprehensive car loan services, including loan approvals and after-sales services. The goal is to achieve new loans exceeding 110 billion baht.

 

Mr. Sasawat Veerapree, CEO of Kasikorn Leasing Co., Ltd., revealed that the company's performance in 2018 saw loan disbursements of 105.644 billion baht, an increase of 24.39% from the previous year. This includes new hire purchase and leasing loans and registered vehicle loans amounting to 43.513 billion baht, up 8.72%, and dealer loans of 62.131 billion baht, up 38.36%. The outstanding loan balance totaled 108.081 billion baht, an increase of 11.36% from the same period last year. The company reported a non-performing loan (NPL) ratio of 1.32%, resulting in a profit of 1.402 billion baht, a growth of 29.78%. This performance aligns with the Thai automotive market in 2018, which recorded sales of 1,041,739 units, the highest in five years.

Regarding the outlook for the domestic automotive market in 2019, Kasikorn Research Center predicts sales will reach 980,000-1,010,000 units, a contraction of 2-5% compared to 2018, as the market adjusts back to normal levels after last year's rapid growth. Eco cars are expected to receive a positive response this year, with opportunities for eco-hybrid and mild hybrid vehicles to be introduced, supported by government tax incentives that will make them competitively priced. This presents an opportunity for consumers to adopt electric vehicle technology more easily. Additionally, other electric vehicles, including plug-in hybrids and battery electric vehicles, are expected to grow significantly as several manufacturers decide to invest in producing these types of vehicles in Thailand. The commercial vehicle market is anticipated to benefit from factors such as elections and government investments that are likely to expand.

In terms of the hire purchase loan outlook, after growing over 13% last year or more than 1.06 trillion baht, marking the first double-digit growth in six years, the overall growth rate for 2019 is expected to slow to 4.5-6.5% due to the adjustment in new vehicle sales.

For vehicle collateral loans, growth is expected to continue this year, supported by new regulations on vehicle registration loans effective from January 31, 2019. This regulation will increase competition among commercial banks as major hire purchase lenders. Demand for loans from SMEs and individual consumers is also expected to rise, given the interest rate caps and clear guidelines aimed at protecting borrowers' rights and increasing access to loans.

Mr. Sasawat further stated that in 2019, Kasikorn Leasing will continue to focus on the market with an emphasis on digital innovation in all types of car loans, leveraging the strengths of its service network and customer base from Kasikorn Bank to enhance both online and offline offerings. The aim is to provide car loan products that meet the lifestyle needs of customers in today's world, which seamlessly integrates digital technology into daily life. Various platforms will be developed to facilitate services and offer targeted products and services across all dimensions, including loan services, repayment capability assessments, loan approvals, and comprehensive after-sales services, especially for Kasikorn's vehicle collateral loans aimed at customers who own vehicles and need working capital or financial liquidity. This year, the company has launched a new product for Kasikorn's vehicle collateral loans, expanding to meet the needs of a broader customer base. Additionally, the company will continue to develop Data Analytics technology to analyze customer data deeply to understand their needs better, enabling the offering of car loans to both customers looking to purchase new vehicles and those seeking to convert their vehicles into working capital, as well as business customers in the automotive sector without needing to apply for loans upfront. In collaboration with partners, Kasikorn Leasing will continue to focus on strengthening partnerships with major partners for ongoing joint marketing efforts, with new campaigns rolling out throughout the year to cater to both business and individual customers, in coordination with Kasikorn Bank, aiming to achieve loan disbursements exceeding 110 billion baht in 2019.

 

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