SET-listed Heng Leasing aims to expand its loan portfolio by 20-30% to 14.4 billion baht this year thanks to rising car registration loans, while reducing its non-performing loans (NPLs) to 2.9% from 3%.
Heng president Wichai Suphasathikul said the overall credit service market this year continues to expand because of higher customer demand for financial resources to support their careers after the economy grew.
"This is an opportunity for Heng to extend credit to locals under our concept of 'everybody can borrow'," he said.
Heng's strength lies in having a team who understand the language, culture and way of life of locals, said Mr Wichai. As a result, the company can offer suitable loan products in line with customer requirements.
The company has 678 branches nationwide and plans to expand to 830 in the first half of this year.
The expansion will enhance its competitiveness in providing credit services to customers and help effectively manage the quality of the debt portfolio, he said.
Heng expects to minimise default payments, with a target to cut NPLs to 2.9% from 3% last year.
Chief executive Sutharntip Phisitbuntoon said Heng targets the proportion of car registration loans rising to 55-60% of the company's overall portfolio this year based on attractive returns. The balance is from hire-purchase loans (30-35%) and other segments.
The company plans to increase business alliances with used car operators, which now amount to more than 6,500 nationwide, under strategies to expand the loan portfolio and capture growth in the local automotive market.
Moreover, Heng aims to increase its partners in the life and non-life insurance brokerage business from 12 at present, she said.
Mrs Sutharntip said in addition to seeking loans from financial institutions, Heng is preparing a plan to issue corporate bonds to support the exponential credit expansion.
