Bangkok Bank eyes growth in loans to SMEs

Expected increase in small-sized loans prompts bank to focus on SME loans in 2010.

Bangkok Bank's executive vice-president Piya Sosothikul said they target loan growth for small and medium-sized firms of 4 percent to 4.5 percent this year, 1.5 times higher than the country's gross domestic product growth target of about 3 percent to 3.5 percent in 2010. Thailand's rebound is forecast to be driven by government spending while private investment is still sluggish.

"As the economic recovery is still fragile, we will support SMEs with lending to help them diversify risks," he said.

BBL, Thailand's largest bank in terms of asset size, is confident of achieving its SME loan growth target. But the bank expects to book a contraction in total loans in line with falling GDP last year. The bank's SME loans represent 35 percent of a portfolio worth 1.04 trillion baht ($31.36 billion).

For 2010, the bank aims to increase total lending by 3 percent to 4 percent, and plans to focus on its three core businesses - SME loans, retail banking and foreign business.
 

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