Mr. Tirachart Chiracharasporn, KLeasing Managing Director, said, "KLeasing is pleased to be named Fastest Growing Leasing Finance Company 2022 by International Finance Awards 2022. This achievement reflects the strong teamwork of our employees and collaboration between KBank and KLeasing in product development and service delivery for both retail and business customers as well as our synergy with counterparties and partners, especially car manufacturers and dealers, in the ongoing launch of campaigns and products in alignment with market demand. As evidenced, the company enjoyed satisfactory growth in both new loan and net profit."
Regarding KLeasing's operating performance during the past two years, the company's outstanding loan rose by 5.4 percent and 13.4 percent in 2021 and 2022, respectively, outperforming that of the banking system which grew 0.12 percent and 0.35 percent, respectively. Meanwhile, its auto loan for all types of vehicles in 2022 topped 113,445 million Baht, growing 18 percent YoY. Given the company's streamlined work processes, efficient cost control and debt collection, KLeasing enjoyed record profits of 2,134 million Baht, or an increase of 24.8 percent over-year. The company's return on assets (ROA) and return on equity (ROE) stood at 1.6 percent and 17.9 percent, respectively.
Meanwhile, factors supporting KLeasing's growth over the past year include the development of comprehensive products and the ability to penetrate new customer segments in order to bolster interest income from auto loans, such as new car loan and dealer floorplan. Additionally, KLeasing expanded its collaboration with more partners such as carmakers and importers, namely BYD and Neta while also launching numerous marketing campaigns with existing partners such as Audi, Mitsubishi, MG, Suzuki, Mazda, Subaru and Hyundai. KLeasing also pressed ahead with its strategies in alignment with KBank's 'GO GREEN Together' policy. At the same time, the company was appointed as an authorized dealer for leading electric vehicle brands. Looking ahead, KLeasing aims to be at the forefront in the Thai EV loan market, with a 25 percent share, against the current 16 percent.
Regarding auto loan (used car), KLeasing has been able to meet the prevailing needs of second-hand car buyers. The company will place emphasis on collaborating with partners, with the aim of maintaining its status as the number-one auto loan service provider for used cars via online auto dealers.
For Car to Cash, KLeasing has introduced comprehensive products to meet the diverse and specific needs of its customers such as Car to Cash Self-Declared, Balance Transfer and Top-Up.
"KLeasing will continue to press ahead with product and service development, with emphasis placed on offering auto loan innovations via digital channels to meet the needs of all customer segments and cement KBank's strengths, particularly its solid K PLUS user base," said Mr. Tirachart. "In 2022, the company improved its loan approval assessment using i-Scoring, as part of KBank's integrated credit scoring that comprises the application scores, bureau scores, and special scores for loan applicants who are KBank's clients. This year, KLeasing has launched the Digital Self-Apply innovation - a one-stop, easy-to-use platform which allows customers to apply for auto loan by themselves via digital channel. Loan approval is based on i-Scoring - the innovation which helps increase the precision and speed of loan approval, offering a greater opportunity for KBank's customers to get an auto loan."
Regarding the Thai car market in 2023, KResearch and KLeasing project that domestic car sales will reach approximately 890,000-920,000 units, increasing by 5-8 percent YoY. Easing of the chip shortage, the launch of new car models and rising price competition are expected to drive market expansion. The vehicle segments poised for sales growth include small sport utility vehicles (SUVs), especially models using batteries and electric motors such as hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) that typically use less fuel, along with battery-powered electric vehicles (BEVs). Plus, the pickup truck and heavy-duty truck markets may see growth in line with the expansion of public and private investment. As for domestic BEV sales this year, it is expected to grow by 160.1-271.6 percent, or around 35,000-50,000 units, resulting in an increase of market share to more than 4 percent of total car sales. Supporting factors for this include positive feedback of car buyers, government subsidies, and the launch of new BEV models in various segments among domestic automakers. As a result, in 2023, competition among businesses offering auto loans in new car segment will tend to intensify. Likewise, car registration loans are expected to grow by 25-30 percent as many consumers still need a credit line to obtain cash. This type of loan is an alternative that meets their needs, in terms of interest rates and the chance of loan approval.
Source: KASIKORNBANK