Siam Commercial Bank's growth rate to miss target

Siam Commercial Bank, however, expects 7 percent lending growth due to aggressive moves and better global economy.

The bank expects its loan growth to be double the country's economic-growth rate next year, due to a more aggressive focus on home, auto, corporate and SME loans.

According to a report in National Multimedia President Kannikar Chalitaporn said the bank's loan growth shrank during the first nine months of the year but that it would return to slightly positive growth at year-end. However, the full-year growth rate will fall short of the bank's target.

SCB predicts economic expansion of 3-4 percent for the Kingdom next year. Normally, the bank's loan-growth target is at least double the growth rate for gross domestic product.

Its loan-growth target for this year is 3-5 percent, while the economy is expected to show negative growth of minus 4 percent.

"What we can say is the worst has passed for both the Thai and the global economy. Economic expansion is slow, but it is coming. Next year, we'll focus on home, auto and corporate loans. SME loans will grow next year after seeing no growth in the past two years. Loan demand is better now than in the first half," said Kannikar.
 

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