Land and Houses Financial Business Group
Announced its 2022 Performance with Profit Growth of 14%, Low NPL at 2.09%
Highlighting its 2023 Strategy to Penetrate High-yield Loan Portfolio
and Grow Retail Customer Base through Digital Platform
Mr. Shih Jiing-Fuh, president of LH Financial Group Public Company Limited or LHFG Said “The overall Thai economy in 2023 is likely to expand constantly by 3.7%, driven by the improved tourism sector, employment and private investment and it is expected that inflation will gradually decrease in line with energy prices. However, other risk factors that may affect the recovery of the Thai economy including the recovery of household income and some fragile business sectors, tightening monetary policy of major trading partners, especially the United States and the European Union as well as the geopolitical risks of the Russian-Ukrainian dispute, are to be monitored.”
The 2023 strategy of Land and Houses financial business group focuses on offering a complete range of financial and investment products that are suitable for the situation and investment timing for customers via digital platform, including synergy strategies between the entities in the financial business group and CTBC, parent company of Land and Houses financial business group to jointly tailor products and services that meet the needs of all customer segments and reach out more customer base to the segments that engage in foreign transactions (Trade Finance). In addition, new forms of credit products and loans for potential customers who do not have an access to funding sources, have also been innovated.
In 2022, the performance of Land and Houses Financial Business Group showed a net profit of Baht 1,579 million or grew by 14.1% yoy, mainly due to an increase in interest income. Loan growth was 23% from all segments, especially retail, SME and Taiwanese customers with a growth of 35%,47% and 95%, respectively while the NPL was low at 2.09 percent, decreased from 2.44 percent last year. The bank has also set the substantial amount of provision for doubtful accounts to buffer the impacts from customers potentially affected by COVID-19. As a result, NPL Coverage stood at 221%.
Ms. Chompoonoot Pathomporn, Chief Executive Officer and president of Land and Houses Bank Public Company Limited or LH Bank, revealed “Seeing the technological disruptions in the financial services industry, the bank focuses on developing new business models using technologies in various forms for more effective financial services. The key pillars in formulating the strategic plan include sustainability, digital enabling, resilience and appropriate risk appetite.”
The bank's strategy for 2023 is to emphasize the growth in loan portfolio that generates good returns or high-yield segments with proper risk management, including cross selling of the bank's products and increasing fee income including developing digital capabilities (Digital Transformation) that help improve work processes to be more agile. Moreover, the bank also makes full use of data analytics along with upgrading the digital platforms to address the needs for complete financial and investment transactions such as “LH Bank Profita” Investment Application and “LHB You” Mobile Banking Application that have been rolled out recently, with new features of financial highlights that correspond to every lifestyle of spending, deposit-withdrawal-transfer or any type of investments. LHB You allows you to personalize your own financial lifestyle through exploring the identity of customers in the form of AVATAR to create a profile that is outstanding, unique, user-friendly, complete transactions in a one-stop service, without visiting any branch. Consequently, all financial needs that are smarter than before with more customizations are fulfilled.
In addition, the bank places the importance on sustainable banking by operating its business with care, environmental and social accountabilities and good governance principles including supporting ESG goals.
Mr. Monrat Phadungsit, President of Land and Houses Fund Management Company Limited or LH Fund mentioned “The 2023 strategy is to expand the private fund customer base, both institutional and ultra-high-net-worth individuals. Private fund clients will receive advice on tactical asset allocation and portfolio strategy from strong international partners in portfolio management to meet particular needs of each investor. The company is moving forward to enhance digital service systems through online platforms as to facilitate investment for all investors.”
For fund performance in 2022, the company had the fund under management including property funds and real estate investment trusts (REITs) of approximately Baht 55,657 million, decreased by 15% yoy. For private funds, the fund size was Baht 14,235 million with 51% growth, while the provident fund (PVD) was Baht 6,046 million with 4% growth.
In addition, the company received the "Excellence In Innovation in the category of House Awards" from Fund Selector Asia Awards Thailand 2022, which guarantee the continued success from 2021 in introducing innovations to bring about success.
“LH Fund Growth is a fund that invests in growth stocks. The performance as of December 31, 2022, during the 3-month, 6-month, 1-year period was 7.27%, 8.46% and 6.36% (% per year), respectively. It surpassed the benchmark which was 5.19%, 7.65% and 3.54% (% per year), respectively”, added Mr. Monrat.
Mr. Kan Atthamsunthorn, president of Land and Houses Securities Public Company Limited or LH Securities, revealed that the strategic plan for 2023 that the company continued the focus on sustainable growth by enhancing technologies to boost up competitiveness and increase more convenience for customers. Besides, it also aimed at extending investment services to new segments of customers through the use of data analytics in parallel with investment product development to respond to all "Excellence In Innovation in the category of House Awards" from Fund Selector Asia Awards Thailand 2022 conditions in order to generate lucrative returns for investors. We are developing a system to connect with LH Bank's Mobile Banking Application "LHB You" to add more service channels through digital platforms so that customers can receive integrated financial and investment services and expand the retail customer base.
According to the 2022 performance, the company had a total brokerage fee income of Baht 186.1 million, decreased from 2021, in line with the sluggish stock market turnover compared to the high base in 2021. However, the company received total interest and dividend income of Baht 414.6 million, increased by 9.8% from 2021, resulting in a net profit of Baht 134.6 million.