* Loan spread to be 4.5 percent or lower this year
* Non-performing loans to remain near last year's 2.54
* Reports 17.8 percent y/y rise in 2016 net profit
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Jan 12 Thailand's Tisco Financial Group Pcl
expects its loan spread - the difference between
interest paid on deposits and earned from loans - to remain
stable or fall slightly in 2017 from last year, the company's
chief executive said on Thursday.
The company's loan spread this year could be 4.5 percent or
less, Suthas Ruangmanamongkol told a press conference in
Bangkok. The group owns Tisco Bank, one of Thailand's top five
auto loan providers.
"Economy should expand this year, but there is a tendency
for interest rates to go up. This could raise the cost of
funding," he said. "We will try to control costs in other
aspects," said Suthas, who expects the company's non-performing
loans to remain near last year's 2.54 percent.
This should result in a slightly lower loan loss provision
than last year's 3.97 billion baht ($112.34 million).
The group has forecast a 15 percent loan growth this year
after transferring retail banking business from Standard
Chartered Bank (Thai).
However, Tisco's own loan portfolio will remain stable at
225 billion baht ($6.37 billion), Suthas said. Last year, total
loans fell 5.6 percent.
The company posted a net profit of around 5 billion baht
($141.48 million) in 2016, a 17.8 percent increase from 2015,
according to a company statement. Suthas gave no forecasts for
profits on Thursday.
($1 = 35.3400 baht)
(Reporting by Manunphattr Dhanananphorn; Writing by Patpicha
Tanakasempipat; Editing by Himani Sarkar)