Three Key Points Clarified by MTLS 'Chuchat' - Nothing to Worry About

'Chuchat Petaumpai’ addresses three pressing issues against MTLS, asserting there's no cause for concern. The new law calculates interest at 15%, DSI lawsuits and a change in leasing business name. He confirms the company's growth target of 40% this year with NPLs not exceeding 1.5%.

Chuchat Petaumpai, CEO of Muangthai Leasing Public Company Limited (MTLS), reveals a flurry of negative news currently impacting the company. To clear the air, he begins with concerns about the draft financial services regulatory law, focusing on creating new oversight bodies to protect consumers from unfair interest rates and excessive fees. Although the specifics of the new law have not been officially announced, it's believed the interest rates may be pegged at 15%, based on current lending data. As for the rumored DSI lawsuits, these are merely rumors, with ‘Muangthai Leasing Public Company Limited' using the name but not conducting leasing or hire-purchase activities. Instead, their core business is lending. Hence, in April, a proposal will be made to shareholders to rename it 'Muangthai Capital' to establish a new image and clarify misunderstandings.

Regarding operations, Chuchat confirms the company is on track to achieve its 40% growth target this year while maintaining NPLs below 1.5%. He emphasizes that despite concerns, there's room for positive expansion in MTLS's business. It's expected to excel in 2021, with increased lending by over 40% compared to the previous year. The company's goal for this year is an outstanding loan portfolio of 80 billion baht, focusing on maintaining high-quality loans to keep NPLs below 1.5%, a level lower than the current industry standard. Additionally, the company aims to increase year-end outstanding loans to 50 billion baht, up from 35 billion baht.

Chuchat concludes by expressing optimism about loan growth, attributing it to the increasing number of branches. The target is to reach 4,000 branches nationwide by 2023, compared to the current 2,500 branches, enabling the company to expand its customer base further.