BRIEF: Krung Thai reports rapid loan growth [Bangkok Post, Thailand]By Darana Chudasri, Bangkok Post, ThailandMcClatchy-Tribune Information Services
July 07--Krung Thai Bank expects loan growth this year to exceed targets after posting 7% credit growth in the first half.
President Apisak Tantiworawong yesterday said the KTB board will consider whether to raise its full-year lending target at a meeting later this month.
"Credit growth in the first half of this year increased quite well on the recovery from last year's floods and the expansion in manufacturing activity," he said.
"We saw 7% growth in the first half, exceeding our previous full-year targets."
Mr Apisak said he expects credit growth in the second half to slow somewhat due to the euro-zone crisis and growing domestic political uncertainties.
He said clients are showing greater concern over increasing business risks.
For the past two years, KTB has been setting aside additional general reserves of 500 million baht per month.
Loan quality has yet to change in any significant manner.
Chartsiri Sophonpanich, the president of Bangkok Bank, said BBL increases its reserves by 1.5 to 1.8 billion baht each quarter.
The impact of the euro-zone crisis on BBL is expected to be minimal, although it will monitor the event for export clients.
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