State-owned GH Bank has earmarked 28.5 billion baht for five low-rate mortgage packages this year in a bid to help the bank achieve the 2018 lending target of 189 billion.
The five mortgage packages will cover both new lending and refinancing, said president Chatchai Sirilai.
GH Bank offers 2.8% interest per year for the first year for state officials and 2.75% for the first year for those who buy homes from property developers participating in the scheme.
Another three mortgage packages offer 3.85 percentage points below the minimum retail rate (MRR) for the first three years, equivalent to 2.90% based on GH Bank's current MRR of 6.75%; 2.85 percentage points below the MRR for the first three years, equivalent to 3.90%; and 3.85 percentage points below the MRR for the first two years, equal to 2.90%.
Mr Chatchai said the cheap mortgage loans are intended to comply with the bank's mission to help people, especially low- and middle-income earners, own their own homes.
The mortgage lender set a target of 189 billion baht this year, up by 6% from last year's target.
GH Bank's mortgages outstanding amounted to 1.02 trillion baht at the end of 2017. With strong demand for low-rate mortgages, the bank managed to lend 197 billion baht in mortgages last year, up 17% from the end of 2016 and exceeding its target by 18.5 billion.
At the end of 2017, GH Bank's total assets surged by 8.7% to 1.06 trillion baht, its deposits soared by almost 10% to 858 billion, non-performing loans (NPLs) came to 42.1 billion -- representing 4.21% of total lending -- and the capital adequacy ratio was solid at 14.9% of risked weighted assets.
The bank's coverage ratio stood at 158% of NPLs. The NPL ratio is expected to decline to 4%.
GH Bank extended 14 billion baht in housing loans for January, doubling year-on-year. It targets net profit of 12.1billion baht this year, up from 11.7 billion last year.
