News > LH Financial Group (LHFG) sets forth the 2022 strategy
03 March 2022
LH Financial Group (LHFG) sets forth the 2022 strategy
 
 
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LH Financial Group (LHFG) sets forth the 2022 strategy to become an integrated financial advisor,
banking on its expertise in addressing customer demands on product analysis
and development and the Digital Platform designed to meet modern customer behaviors.

 
        Mr. Shih Jing-Fuh, President of LH Financial Group Public Company Limited (LHFG), elaborated that in 2022 the group would leverage our digital banking potential and collaborate with CTBC Bank, Taiwan’s largest commercial bank, raised its stake in LHFG from 35.62% to 46.61% in September 2021 and became the Group’s major shareholder. The transaction bolstered the Group’s competitiveness and paved way for international exposure.

        The strategy is aimed at boosting the Group’s competitiveness and penetration in high-margin segments under the concept “Customer Centric”. LHFG also explores business partnership opportunities in the quest to be a professional financial advisor. Meanwhile, the customer base will be expanded through the delivery of an integrated suite of products and services concerning loans, deposits, international transactions, life and non-life insurance and investment designed to best satisfy customer demands.

        LHFG reported 1,383.7 million baht in 2021 net profit, a 32.7% decline from 2020 following a hefty increase in reserve provisions. The provisions were heightened though the Group’s non-performing loans (NPLs) headed down from 2.77% at end-2020 to 2.44% at end-2021. Thanks to the provisions, the coverage ratio jumped from 148.4% as of the third quarter of 2020 to 179.1% at end-2021. The action followed CTBC’s equity acquisition in September 2021. The major shareholder perceived that given the persistent coronavirus outbreak (COVID-19), LHFG should raise the loan-loss provisions from 1,738 million baht as of September to 3,283.8 million baht at end-2021 despite a decline in NPLs. Such action was aimed at supporting the 2022 strategies in enlarging the Group’s business and small-credit portfolio.

        At the end of 2021, Land and Houses Bank Public Company Limited (LH Bank) showed strong financial positions, with the capital adequacy ratio (BIS ratio) at 18.4% which was well above the Bank of Thailand’s 11% requirement of total Tier-1 capital accounted for 16.1%.

        Ms. Chompoonoot Pathomporn, Chief Executive Officer and President of Land and Houses Bank (LH Bank), revealed the bank’s plan to grow its loans by 6-7% in 2022 with maintained emphasis on the industrial sector that still presented growth prospects. The Bank also plans to offer Digital Trade Finance products and services as well as expand the personal loan portfolio. Assistance to small clients affected by the COVID-19 impacts will continue so that they can remain in business and hence propel the economy as a whole. The Bank will proceed with branch rebranding for a more premium image in support of its professional financial advisory services. Holistic wealth products will be developed covering mutual funds and life insurance policies.

        The bank will continue to develop our Digital Infrastructure and platform to boost the Group’s competitiveness and to further service our customers under the concept “Customer Centric” which put the importance on the customers. Furthermore, the bank offered the special 1.5% Pro-Fit Digital Savings rate which was well received. Also, in the quest to bring about memorable customer experiences, the Bank has developed Profita Application to support 24-hour mutual fund switch and trade. The application comes with various features that allow timely investment. It is packed with financial information from world-class funds, selected and digested by experts accordingly to customer lifestyles. The concise and easy-to-understand information are aimed at turning customers to professional investors. The application can be downloaded at Apple Store and Play Store. The interesting features include:
  • Fund search based on historical returns and dividends from a pool of Morningstar-rated funds or funds recommended by LH Bank advisors
  • DCA feature that supports weekly and monthly fixed investment
  • Robo Advisor, the smart assistant that helps on investment planning and automatic portfolio adjustment
  • Profit-Loss Notification accordingly to specified trigger points
        Mr. Monrat Phadungsit, President of Land and Houses Fund Management Company Limited (LH Fund), said that in 2022, the Company maintained its emphasis on growing different assets (asset allocation) instead of single assets, in line with the differences in customer behaviors. The Company also looks to broaden the institutional customer base and penetrate the Ultra High Net Worth segment. Digital Platform will be deployed to support new distribution channels, as a way to facilitate existing customers and reach out to target customers.

        In 2021, the asset under management (AUM) including property funds and real estate investment trusts (REITs) was valued at 63,851 million baht, showing a 10% increase. The private fund portfolio expanded 12% to 9,418 million baht while the provident fund portfolio grew 56% to 5,808 million baht.

        Mr. Kant Athatamsuntorn, President of Land and Houses Securities Public Company Limited (LH Securities), revealed the Company’s plan to pursue sustainable growth, banking on LHFG’s supports and CTBC Bank’s global network. LH Securities aims to build new customer segments, develop new investment products and offer digital services that include online account opening and identification. It also plans to broaden the mass market segment, the area that the Company is proficient in and shows an outstanding growth rate.

        2021 also marked a year of successes for the Company, with the creation of new business ecosystems including online rights offering service (E-RO) and collateral placement services via the QR Payment system.