MTC's confident 80 BN of new loan issued this year, Speeding up the new branches across Thailand

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Mr.Chuchat Petaumpai, CEO, Muangthai Capital PCL revealed that the first half of the year, the new loan issued amount was 36.62 Billion Baht and the loan receivable was totaled 41.47 Billion Baht, which was slightly higher than 40% growth Y-o-Y, whereas the net profit was 1.75 Billion Baht, which was 57.72% growth Y-o-Y. It is expected, however, that the whole year new loan issued shall reach 80 Billion Baht and the loan receivable is expected to reach 50 Billion Baht without any problems.

'The outlook of the second half of the year has nothing to be worried because, due to the business nature, the second half of the year normally performs better than the first half. Hence, it is expected that the target growth of 40% for the whole year shall be achievable.'

For this year, the branch opening plan is to open another 600 branches, making totaled 3,000 branches. However, we expect that the number of branch might be slightly higher than 3,200 branches, considered highest coverage in Thailand. Although the new loan issue amount is quite huge but the NPL is still maintained lower than 1.50%, demonstrating the efficiency in company’s asset quality management.

For the next year, 2019, the target of new branch is to open another 600 branches, in which will be making total 3,800-4,000 number of branches.

'Having more branches helps the accessibility of our customers in the rural areas in different regions. We are confident that the loan growth shall maintain at about 35%, as well as the loan receivable and new high of net profit.'

Besides, in 2019, the election would help stimulating the private sector’s liquidity. Therefore, there is no worry regarding the NPL, so we will mainly focus on the expansion across Thailand, including Bangkok metropolitan.

Today, the foreign investors are still holding to see a clearer direction of the coming Non-bank Act from Ministry of Finance. Once the Act is issued, it shall be cleared for the lenders how much the interest rate and the fees can be such as 28% or 36%. As a result, the investors would be relieved and come back to invest in MTC again.