Kasikorn Leasing aims for top three

FINANCE CORPORATE STRATEGY

Kasikorn Leasing aims for top three

DARANA CHUDASRI

Kasikorn Leasing, a unit of Kasikornbank, hopes to increase its market share to 7% this year.

''We have a 4% market share at present and rank among the top five operators. We expect to break into the top-three by the end of the year,'' said managing director Issara Wongrung.

Among local banks, Thanachart Bank leads the leasing market with a 25% market share, followed by SCB Leasing, a unit of Siam Commercial Bank, with 12%, and Tisco Bank at 8%.

Mr Issara said Kasikorn Leasing expected its outstanding loan book to increase to 46.2 billion baht by the end of the year from 22.137 billion at the end of last year.

New lending is projected at 43.2 billion baht this year, with 13.5 billion in new loans to be made through car dealers.

Mr Issara said the leasing market was projected to grow 4% to 9% in 2008, a sharp turnaround from the 5% contraction posted in the first 11 months of last year.

Kasikorn Leasing extended 22.6 billion baht in new loans last year, with 6.8 billion made through car dealers and the rest through direct leasing loans.

The company posted a profit before provisioning of 83 million baht last year and a net profit of 25 million. Profits after reserves and loss provisioning this year are projected at 284 million baht. Retained losses of 288 million baht are also expected to be cleared this year.

Around one-quarter of Kasikorn Leasing's customers are referrals from its parent, Kasikornbank, with the rest clients from dealers and the company's 13 business centres.

Mr Issara said the company planned to open three new business centres this year in Nakhon Ratchasima, Ubon Ratchathani and Surat Thani.

It also planned to sign up marketing arrangements with Mitsubishi Motors, Hyundai Motors and Tata Motors to provide leasing services to car buyers.