KLeasing launches new Big Giveaway campaign to attain 2016 target

Stocks and Financial Services Press Releases Wednesday August 24, 2016 13:39
Bangkok--24 Aug--KASIKORNBANK

After achieving a 35.31-percent surge in its financing over the first half of 2016, KASIKORN LEASING (KLeasing) aims to launch active marketing campaigns in provincial markets. The company is also prepared to offer more loans under K-Auto Finance (Refinance), given viable market conditions and low levels of NPLs.

KLeasing Executive Chairman Mr. Thawee Teerasoontornworn detailed the company's 1H2016 performance. New loans amounted to 41.15 billion Baht, growing 35.31 percent YoY; the total consisted of new hire-purchase and leasing loans at 18.07 billion Baht and floorplan loans at 23.08 billion Baht, rising 18.31 percent YoY and 52.45 percent YoY, respectively. Outstanding loans increased 0.50 percent to a total of 89.35 billion Baht, while the NPL ratio stood at 1.54 percent, better than targeted by 0.36 percent. As a result, 1H2016 profit stood at 335 million Baht, compared to the full-year target of 682 million Baht.

For the second half of this year, KLeasing is determined to promote its products in the car hire purchase market with a multitude of campaigns and in all customer segments, particularly in major provinces. More emphasis is now given to K-Auto Finance (Refinance) amid market opportunities and sound debt quality. A new "Big Giveaway" campaign was recently introduced for customers who own lien-free cars and are in need of funding. Such customers may apply for loans under K-Auto Finance (Refinance) and, upon approval, are eligible for exciting rewards, including one of four Isuzu Spark 1.9 Ddi B pickup trucks or one of 100 PT fuel coupons worth 5,000 Baht each. The campaign runs from now until November 30, 2016, and the winners will be picked during September – December 2016. Applications can be made at any KBank branch nationwide or via the KLeasing on Mobile application.

Mr. Thawee added that the auto hire purchase business has bottomed out since the middle of 2015, and is likely to recover with modest growth of 0.5-2 percent over the rest of 2016. The market will be driven by a 2H16 auto sales increase, fewer car repossessions, a higher repayment rate, and a low interest rate environment. As for the car title loan business, 2016 will see growth of 12-14 percent, a stable pace from 2015, to 51-53 billion Baht. The NPL level of this market segment is generally lower than that of hire purchase loans, and the segment will even tend to pick up further, thereby making this an interesting market, in tandem with KLeasing's current marketing strategy.

Hire purchase for used cars is expected to improve in 2016, with ongoing momentum from 2H15, due mainly to rising used car prices following a price slump during 2013-2014. Given this, used vehicle sellers are now seeing brighter prospects for their business, while financial institutions are willing to extend additional floorplan credit to these dealers. Moreover, used cars have become more attractive among buyers as the excise tax enforced since early this year has widened the gap of prices between some used and new cars, while fragile consumer spending power due to sluggish economic conditions has slowed new car buying. Demand for used cars has also been catalyzed by a common standard of quality guarantee applied by several used car dealers to build consumer confidence. With stable used car prices, hire purchase providers have thus shifted their focus to the used car market, in an attempt to offset weak demand for new cars, an ongoing trend since 2014. Credit limits have been increased for some models of used cars, while promotional campaigns with reduced interest rates are offered occasionally. Meanwhile, the big bike market is anticipated to surge at least 30 percent within this year, and is likely to keep rising in 2017 on the back of vast room for further expansion.

As for the 2016 full-year outlook of the auto market, KResearch projects that sales in Thailand will shrink 4 to 7 percent, equivalent to sales of 740,000-770,000 units, thanks to last year's high base and a sharp sales uptick before the new excise tax rate was enforced.

Due to shifting vehicle buyer preference and improved farm incomes, the segments with relatively inviting prospects will likely be PPVs, B-SUVs and 1-ton pickup trucks. PPVs are now seeing the highest sales in the Thai market following launches of new models by many manufacturers in 2015 and 2016. PPVs have become a popular choice, with designs that support various uses under difficult road conditions. Launches of redesigned models have also drawn buyers who are PPV lovers with enough purchasing power for new purchases. With the interplay of these factors, 32,130 PPVs have been sold in 1H16, realizing sharp growth of 109 percent YoY.


Latest Press Release

BTS GROUP FY 2019/20 NET PROFIT GROWS 184% YoY TO 8.2 BILLION BAHT AGAINST THE COVID-19 PANDEMIC IMPACT

BTS Group Holdings Public Company Limited (BTS Group) posted an excellent set of financial results for fiscal year 2019/20 (from April 2019 to March 2020). In spite of slowdown in the last quarter of fiscal year due to the outbreak of the coronavirus...

Photo Release: KBank and EGAT Saving and Credit Cooperative signs an agreement to integrate financial service via mobile app

Mr. Silawat Santivisat (right), KBank Senior Executive Vice President, and Mr. Chartchai Rojanaratanangkule, Vice President and President of Financial Management Committee, EGAT Saving and Credit Cooperative Limited, signed an agreement on the...

Thailand-based insurtech Go! Insurance secures funding to launch its easy-to-access health insurance platform

Go! Insurance - a Thailand-based digital health insurance company - has raised pre-seed funding from investors and will be launching its service in Thailand to provide better and easier access to health insurance. Founded in late 2019 by two insurance...

K PLUS launches new features for loan management via K PLUS – you can pay off your loan faster without going to a bank branch

KASIKORNBANK (KBank) is always determined to give customers more convenience. With the launch of four new features on K PLUS, customers can easily manage and conduct their loan transactions via the K PLUS application, with no need to go to a bank branch....

Thailand’s Economic Front in Fighting COVID-19

Thailand has performed well in containing the COVID-19 outbreak and mitigating its impact. Since 27 April 2020, the number of new COVID-19 cases has increased only slightly, while some days saw no new cases at all. About 96 per cent of those infected...

Related Topics