May 4, 2017

Press Release

ICBC (Thai) aims loan growth of 10 - 15% for 2017

Direct investments from China, HK and EEC are key the drivers of the Bank growth

Industrial and Commercial Bank of China (Thai) PLC or ICBC (Thai) is confident that it can achieve its loan growth target of 10-15% for 2017 after seeing the sign of continued direct investments from China and Hong Kong. Thailand’s Eastern Economic Corridor (EEC) is the key enhancement for the direct investment from China, while, the Bank and its subsidiary reported its net profit of Baht 544 million in first quarter of 2017, an increase of 3% from the same quarter last year.

Dr. Zhigang Li, Chairman of the Bank, said that ICBC (Thai) and its subsidiary announced an impressive financial result for the first quarter of 2017 amidst Thailand’s gradual economic growth by recording a net profit of Baht 544 million, up by Baht 17 million or 3% compared to the first quarter of 2016. Total assets grew by Baht12 billion or 6% from Baht 186.05 billion at the end of last year.

The growth of assets was contributed to the investment and the lending. In the first quarter of 2017, the Bank had loan growth of 3% or Baht 3.6 billion. The loan expansion in the first quarter contributed by corporate banking particularly loan to support the Chinese investment in Thailand and overseas. While deposit funding expanded by 3% from Baht92.02 billion from the end of last year.

ICBC (Thai) was able to optimize funding management to properly facilitate business growth thanks to the extensive network of ICBC Group in the global market.

Dr. Li said that Thailand’s economy has been gradually recovering, adding that the Bank expects the Thai economy to grow modestly at 3-4% through the government’s stimulus measures, infrastructure projects and the Eastern Economic Corridor (EEC).

He said that the further direct investments from China and Hong Kong will continue to provide opportunities for the Bank. Therefore, the Bank believes that it will be able to achieve the loan growth target in 2017.

In 2017, the Bank has a loan growth target of 10-15% by adopting the long term strategies in focusing corporate and SME loans especially Chinese enterprises that currently play an important role on investment in Thailand.

The Chairman said that ICBC (Thai) has outlined the strategies to achieve the loan growth target in 2017 as follows:

- To expand the corporate customer base by providing a range of financial solutions in response to the diverse demands of customers.

- To increase loan market share by offering closer and more convenient services to local SME customers.

- To focus on Chinese investors who are keen on investing in Thailand as well as help increasing the volumes of export-import between Thailand and China.

- To improve the Equipment Fleet Financing (EFF) business portfolio and continue to focus more on new car business which is operated by its subsidiary ICBC (Thai) Leasing.

- To expand the retail customer base while upgrading the bank card and digital banking business in order to meet the new market requirement.

-  To focus on enhancing card business as well as electronic banking business and expanding payroll business and cross-selling with ICBC (Thai) Leasing, the Bank’s subsidiary.

-  Aiming to be the first choice bank of the customers in terms of RMB settlement. The Bank was appointed as the RMB Clearing Bank in Thailand in 2015.

“Even though the Bank aims a double digits loan growth, we still maintain a prudent risk management on lending. As a result, the non-performing loan (NPL) in the first quarter of this year was at 1.36%, down from 1.49% at the end last year. The figure is the lowest level among our peers,” said ICBC (Thai) Chairman.

Dr. Li added that despite the gradual economic growth in the Kingdom, the ongoing fierce competitions and the ever-changing technological advances, our asset management together with the support from ICBC, the largest commercial bank in China with extensive network worldwide, the Bank is confidence that the year 2017 will be another year for ICBC (Thai) to meet the strong growth and assure that it will be a valued local bank in Thailand and a financial bridge between Thailand and China.

Last year, ICBC (Thai) and its subsidiary reported a net profit of Baht1.47 billion, up by 10% from Baht 1.34 billion from the year before.  Total assets increased by 2% to Baht 186.05 billion versus Baht 183.03 billion. Lending and investment in 2016 slightly increased by Baht 1 billion to Baht 181.34 billion. The strong asset growth was the result of all business segments including the syndicated loan for TCC Group to acquire Big C in Thailand. The deposit expanded from Baht 86.19 billion in 2015 to Baht 92.02 billion in 2016.

The Bank was able to increase the number of customers both corporate and individual customers. The number of corporate customers as of 2016 was at 3,545 versus 3,491 in 2015, while the number of individual customers in 2016 was 162,757 up from 157,799 in 2015.

The Bank and its subsidiary achieved in managing NPL, which the NPL ratio in 2016 was at 1.49% down from 1.56% at the end of 2015. The gross NPL was the lowest among Thai listed banks and the coverage ratio was the highest level among its peers.

             ICBC (Thai) achievement in 2016 compared 2015