Thailand
KBank keen on growing Laos network
Kasikornbank (KBank) is expanding its presence in Laos as part of the bank’s regional outreach plan, targeting loan growth in the country to reach 3 billion baht next year.
Given Laos’ economic growth potential, the bank targets loans to reach 3 billion baht, deposits 2 billion, and trade finance transactions 18 billion in 2019, said Pattanapong Tansomboon, first senior vice-president at KBank.
The country’s economy has flourished because of opportunities granted by the Laotian government for domestic and foreign businesses to take part in a number of important development projects, said Mr Pattanapong.
KBank’s lending structure in Laos consists of diverse customer groups such as the government and businesses operating in the agriculture, construction, commerce, transport, hire-purchase, and food and beverage sectors.
Local businesses, Thai businesses operating in Laos, and the Laotian government account for 38%, 29%, and 33%, respectively, of the bank’s loan portfolio in Laos.
The target for loans this year is 2.4 billion baht, for deposits is 1.6 billion, and trade finance transactions is 13 billion.
As a result of efficient risk control and management, there have been no non-performing loans, said Mr Pattanapong.
The bank’s business expansion in Laos is in line with its three strategies: opening bank branches or offices; digital platform expansion; and establishing strategic partnerships with local financial institutions, he said.
“Laos is one of the most important targets to enhance a service linkage under KBank’s strategy to create a service network for this region. KBank in Laos, registered as a locally incorporated institution, has been in business for four years,” said Mr Pattanapong.
The first branch at Pone Si Nuan district was opened in 2014 with 13 officers. The headquarters was established in 2017 at Lane Xang Avenue, with more than 60 officers employed.
Source: https://www.bangkokpost.com/business/news/1582886/kbank-keen-on-growing-laos-network