SET-listed Kasikornbank (KBank), the country's third-largest lender by assets, is maintaining its full-year new mortgage lending target in a range of 6-8%, though loan growth was below target for the first six months.
The bank plans to boost housing loan expansion this half, as its full-year target is still achievable, said senior vice president Alongkot Boonmasuk, adding that the digital platform development, particularly data analytics, is a key instrument for achieving that aim.
With the adoption of innovative technology, the bank's loan rejection rate has dropped from 40% to 30-35%.
KBank's lower-than-targeted housing loan growth in the first half was attributable to seasonal factors, Mr Alongkot said.
The bank is yet to offer housing loans via its digital platform, but it has provided some services like the pre-screening process, which has received a positive response.
With data analytics, the bank can more accurately analyse the risk profile of each loan applicant and better control asset quality. The bank's non-performing mortgage loan ratio is lower than the industrywide average of 4%.
"The bank can satisfactorily control soured housing debt because we did not take part in pricing competition in recent years," Mr Alongkot said.
Although the bank can aggressively expand its housing loans this half, KBank said it will not adopt a pricing strategy.
The longest fixed interest rate for housing loan packages of three years is still available at KBank, but Mr Alongkot said mortgage borrowers should choose floating-rate packages, given that their average rates for the overall repayment period are lower.
Moreover, Mr Alongkot said the central bank's concern that some financial institutions are offering 100% or above of loan to value (LTV) to homebuyers will not dampen mortgage loan demand and loan growth this half.
Mortgage loan demand is still positive, in line with robust economic growth, though lenders are paying more attention to the regulator's concerns, he said.
On average, the maximum LTV ratio is 95% for a low-rise property project and 90% for high-rise projects.
KBANK shares closed yesterday on the Stock Exchange of Thailand at 217 baht, unchanged, in trade worth 2.2 billion baht.
