LHFG Targets 10-12% Credit Growth Amid 2% Thai Economic Outlook

LHFG forecasts Thailand's 2025 economy will expand by approximately 2% from government stimulus measures, though it faces external risks including geopolitical tensions, trade tariffs, and volatile global financial markets. The group's research suggests global economic pressure from wars and regional conflicts could push oil prices to $80-90 per barrel, potentially reaching $100 in the latter half of the year, affecting energy-dependent nations like Thailand. The group must also monitor U.S. import tariffs and third-country export screening, which could impact Thailand's automotive, electronics, food, textile, and labor-intensive industries.

Despite these challenges, LHFG believes Thailand will benefit from AI investment, export growth, foreign direct investment, and government stimulus, supporting economic recovery in the second half. In the first half of 2025, LHFG posted net profit of 1,538.6 billion baht, up 37.3% year-on-year, with total assets reaching 425,330 billion baht, a 6.6% increase from end-2024. Total group revenue grew nearly 20%, driven by banking, securities, and fund management businesses, with banking profit up 25%, securities business growth exceeding 200%, and fund management operations up 80%.

LH Bank expanded lending 6.7% to 302,153 billion baht in the first half, outpacing the industry average of 1.8%, with growth across all customer segments. International business transactions grew notably by 27% through CTBC Bank's network—the parent company and Taiwan's top private bank—boosting trade finance fees by 147% and foreign exchange transactions. Management emphasizes quality growth with careful risk management, responsible lending expansion, financial product development for green economy support, and strengthened competitive capacity for Thai SMEs.