KASIKORNTHAIBANK in Lao PDR Targets THB1.5 Billion in Loans, a New Branch and Internship Program

Tuesday 17 May 2016 14:27
KASIKORNTHAIBANK Limited (Lao PDR) believes that Lao PDR's economy remains promising and thus prepares to open another branch there this year. The main focus there will be lending, with a target to release THB1.5 billion in loans, growing over 250 percent YoY, while deposits are expected to reach THB1.2 billion, plus THB9 billion in international trade transactions. KBank also plans to develop personnel via an internship project for Lao students, with studies on finance and banking at KBank, Bangkok.

According to Mr. Pattanapong Tansomboon, KASIKORNBANK First Senior Vice President, by their first anniversary, KASIKORNTHAIBANK Limited (Lao PDR) had secured about THB760 million in deposits, THB425 million in retail and corporate loans, and THB8 billion in international trade transactions in 2015. KASIKORNTHAIBANK offers financial services to business and individual customers, e.g., one-day money transfers from its office to KBank Branches in Thailand, deposits in local and international currencies, loans in LAK, USD and THB, and business matching for Thai and foreign investors intent upon investments in Lao PDR.

In 2016, KBank will mainly focus on increased lending there since the Lao PDR's economy is continuing to expand. Customers are seeking loans for business expansion and working capital, especially those involved in border trade. Thus, KBank aims to achieve THB1.2 billion in deposits, THB1.5 billion in total loans—growing 250 percent, and THB9 billion in trade transactions this year. KBank is also poised to add a new branch on Lan Xang Avenue, Chanthabouly District, Vientiane.

Moreover, KASIKORNTHAIBANK Limited (Lao PDR) will be reinforcing its support to business customers via consulting advisories, business matching, lending, especially to companies dealing with international trade between Lao PDR and Thailand. A wider range of special services will be offered to High Net Worth Individual customers at KBank's THE WISDOM Lounge—the first and only of its kind in Lao PDR, which has been overwhelmed with great interest since opening. Customers enjoy 'best-of-both-worlds' in benefits because THE WISDOM Lounge members receive exclusive financial services and special privileges that accommodate customers' lifestyles in both countries

Mr. Pattanapong added that KBank has been granted an approval to operate as a locally incorporated institution in Lao PDR, which has allowed it to run a fully-integrated business cycle. Practice of successful service provision in Thailand have been adopted, such as those for SME and High Net Worth Individual customers—the segments wherein KBank has upheld the leadership. As a result, KASIKORNTHAIBANK in Lao PDR was able to make profits in its first year of operation.

Furthermore, KASIKORNTHAIBANK Limited (Lao PDR) has an important role in trade/investment between the two countries. Thai-Lao international trade growth has been significant, with Thailand becoming Lao PDR's main trade partner. In 2015, trade between them grew 10.08 percent YoY to THB193.2 billion. Of the total, border trade accounted for 90 percent. If some of those business operators are persuaded into greater use of the commercial banking system, business will rise substantially, and thus help increase cross-border trade transactions among both sides.

In addition to its determination to help strengthen Lao PDR's economy, KBank places great importance on education and personnel development there. KBank has implemented a project to select four third-year university students, with outstanding academic performance and impressive personal conduct, from the National University of Laos and Banking Institute of Laos (two each) to participate in an internship program. They will gain experience on how to run a commercial bank via training in Thailand, where marketing competition is intense and financial service innovations are the most advanced in ASEAN. This project reflects KBank's eagerness to help produce high-quality human capital and develop human resources to accommodate business expansion. Such efforts reemphasize KBank's goal of imparting banking knowledge to society, leading to sustainable development in the future.