Mr. Shih, Jiing-Fuh, President of LH Financial Group Public Company Limited revealed that the credit ratings of Land and Houses Financial Business Group, consisting of LH Financial Group Public Company Limited (LHFG) and Land and Houses Bank Public Company Limited (LH Bank), have been upgraded by TRIS Rating.
 

        TRIS Rating upgrades the company rating on LH Financial Group PLC (LHFG) to “A-” from “BBB+” and revises the rating outlook to “stable” from “negative”. TRIS Rating views that this adjustment is the assessment result of the position of LHFG, a strategically important subsidiary of CTBC Bank, Taiwan's No.1 private financial institution and parent company of Land and Houses Financial Business Group which is rated at “A” stable by S&P Global Ratings. LHFG plays an important role in achieving CTBC Bank's strategic goal to become the regional leading financial institution in Asia.

        In addition, TRIS Rating upgrades the company rating on Land and Houses Bank PLC (LH Bank) to “A” from “A-”, and Basel III Tier 2 capital securities to “BBB+” from “BBB” and revises the rating outlook to “stable” from “negative”. TRIS Rating views that LH Bank as the company in the Land and Houses Financial Group which contributes to the most profits approximately 70% of the group's net profit in 2022, and LH Bank's total asset size is accounted for more than 95% of its total assets, with assets of 2.96 billion Thai Baht at the end of 2022, increased by 17% YoY. Moreover, its NPL coverage ratio was 221% at the end of the year 2022, higher than the industry average of 172%. In addition, LH Bank further diversifies its loan portfolio to SME and retail segments and can draw more deposit from retail customers continuously, rising to 59% of total deposit at the end of 2022 from 54% by the end of 2020. For profitability, LH Bank has the return on average asset (ROAA) at 0.40% in 2022, increased from 0.28% in 2021 with improved net interest margin (NIM) at 2.27% from 2.25% in 2021. Moreover, the liquidity profile has been assessed to be at an adequate level. The Liquidity Coverage Ratio (LCR) stood at 132% as of the end of June 2022, above the minimum requirement of 100%. Furthermore, TRIS Rating sees that LH Bank has continued to increase its investment as to enhance its digital capabilities, which is a better development. LH Bank has recently launched the financial service application “LHB You” and investment service application “Profita”.

        This rating affirmation from TRIS Rating on Land and Houses Financial Business Group reflects positive perspectives on operational capabilities, digital capabilities, and competitive financial strengths and enhancement of operations in the future, says Mr. Shih.