KLeasing reports profit of THB1.08 billion in 2017, growing 31% over- Digital platform will be used to serve customers requirements.

Stocks and Financial Services Press Releases Thursday February 22, 2018 13:45

Given favorable market conditions in 2017, KASIKORN LEASING Co., Ltd. (KLeasing) registered profit of more than one billion Baht. After the termination of five-year car ownership maintenance period, those under the first-time car buyer scheme will decide to buy new cars and it is expected that car sales in 2018 will reach 900,000 units. To be more responsive to customers' demand, KLeasing has joined force with KASIKORNBANK (KBank) in the development of digital technologies and expansion of online service channels/digital platform to enhance comprehensive service capability with respect to financing approval and after-sales assistance.

Mr. Sasawat Virapriya, KLeasing Executive Chairman, unveiled KLeasing's operating results in 2017. Total loans equaled THB84.93 billion, rising 6.47 percent from 2016, consisting of new hire purchase, leasing and car title loans of THB40.02 billion and floorplan loans of THB44.90 billion, rising 8.15 percent YoY and 5.01 percent YoY, respectively. With outstanding loans growing 7.01 percent YoY to THB97.06 billion and NPLs of 1.52 percent, KLeasing's profit surged 31.69 percent YoY to THB1.08 billion.

For outlook of domestic car market in 2018, KResearch projects that auto sales turnover at home may total 900,000 units, up 3 percent over-year. Brighter prospects are expected to be seen in almost all segments, especially small passenger cars, sport utility vehicles (SUVs) and luxury cars. Motorists will have greater choices as numerous new models are likely to be launched on the market. In commercial vehicle market, double-cab pickups are expected to show a promising trend thanks to ample well-heeled buyers even though grassroots remain under pressure. Nonetheless, there are numerous positive factors for the automobile market this year. These include car replacement by buyers under the first-time car buyer scheme after five-year ownership ends, the debut of new models, brighter investment in government's infrastructure projects and private investment, thriving exports, healthy tourism and burgeoning e-commerce. These factors bode well for transportation service. As the key policy rate is poised to hold steady in 2018, financial institutions are unlikely to become more stringent in loan extension. Overall, heightened competition is expected to be seen in both new and pre-owned car markets this year. Given that a new supply of cars under the first-time car buyer program expected to enter the pre-owned market are mainly popular small passenger vehicles and pickups, a new car market may be somewhat feel the pinch.

For 2018, it is expected that auto hire purchase will post a decelerated growth of about 5.5 percent to 1 trillion Baht, declining from the 7.99 percent pace of THB950 billion reported for 2017, due to a projected decline in new car purchases and more stringent loan approval criteria adopted by financial institutions as part of their efforts to cope with heightened credit risk. Meanwhile, auto hire purchase NPLs (unpaid debt of more than three months) have begun to decline gradually since 2015 after rising for three straight years (2012-2014).

Mr. Sasawat added that in 2018, KLeasing will focus on proactive marketing strategies and highlight its strength in jointly expanding the customer base with KBank, covering both retail and corporate customers. Through the development of online/digital platform and its internal work processes, KLeasing can carry out in-depth analysis to understand the customer needs and present products and services that perfectly match their desires. Loan service, loan approval and after-sales service will be upgraded to cater to changing behaviors of customers, who prefer to study online information before selecting the products at the showrooms or applying for the service. At the same time, the online/digital platform development is another catalyst for growth of all types of car loans because it helps reach out to target customers especially for K-Auto Finance (Refinance) program for car-owner customers who want to increase their cash flow or boost their financial liquidity. The platform facilitates preliminary examination of credit limit, repayment service ability and the exact amount of monthly installment, plus easy application via website and application. These features are crucial for corporate customers to make their decisions to apply for loans. This year, KLeasing will continue to focus on this potential group of customers and team up with major business partners to carry out joint marketing campaigns continuously.

Latest Press Release

Photo Release: EXIM Thailand Visits Xayaburi Hydroelectric Power Project

Mr. Nopporn Thepsithar (fifth left), Chairman of the Board of Executive Directors, Export-Import Bank of Thailand (EXIM Thailand) and Dr. Narongchai Akarasanee (center), former Minister of Energy, recently visited Xayaburi Hydroelectric Power Project...

Thailands Promotion of Advanced Technology and Eco-system Development Enables Local Producers to Fly Higher

Thailand has been experiencing a gradual shift from a manufacturing to a high-value manufacturing economy after the country has put all its efforts into promoting the use of advanced technology, science, and innovation in parallel with the development of...

Get 5-Baht Cashback when making payment via K PLUS for BTS tickets until April 30, 2019

To celebrate the latest QR Code payment service via K PLUS for one-way BTS tickets bought from ticket issuing machines at BTS Stations, KBank has teamed up with BTS to offer a cashback of 5 Baht/trip, which will be credited into the passenger's account...

OKEx Revisited Bangkok After Launch of Thai Baht Trading

OKEx, a Malta-based world-leading digital asset exchange, has made a stop-over to Bangkok to bring industry leaders together to exchange ideas on blockchain technology. In view of the fast-growing digital asset community in Thailand, OKEx has launched...

MFC launches new 6-month fund investing in global debt instruments, IPO 18 22 February 2019

Mr. Lim Chong Boon Dennis, President, MFC Asset Management Public Company Limited, announced today that MFC will be launching the MFC International Fixed Income Fund 6 Months Series 12 or I-FIX 6M12 during 18 – 22 February 2019. The Fund is a...

Related Topics