Land and Houses Bank (LH Bank) has announced its 2024 financial results, showcasing growth that bucks the trend of a sluggish economy. The bank reported a surge in profits, expansion in its loan portfolio, and improved asset quality. Looking ahead to 2025, LH Bank plans to aggressively pursue SME and home loans, strengthen risk management, and closely monitor the potential impacts of “Trump 2.0” policies, ongoing global conflicts, and the Chinese economy. The bank aims to sustain revenue and profit growth, boasting an industry-leading NPL Coverage Ratio.
Despite the numerous global economic headwinds in 2025, including trade protectionism under a potential second Trump administration (“Trump 2.0”), ongoing geopolitical conflicts such as the Russia-Ukraine war and instability in the Middle East, as well as the economic slowdown in China and the impacts of climate change, LH Financial Group remains confident in the growth potential of the Thai economy. The Group has announced its 2025 business plan, emphasizing qualitative and sustainable growth.
2024: Outstanding Performance Amidst Challenges
LH Financial Group achieved strong financial results in 2024, despite the challenges faced by the Thai economy. The Group reported total revenue of 8.2 billion baht and a net profit of 2.017 billion baht. Although the net profit decreased slightly by approximately 2% compared to the previous year, the core commercial banking business saw an impressive 18.7% growth in profit, reaching 2.010 billion baht.
A key driver of this significant growth was the expansion of the loan portfolio, which grew by 7%, significantly higher than the industry average, which was negative. Notably, housing loans (home loans) experienced a remarkable jump of 12%, while the overall home loan market grew by only 3%. This reflects LH Bank’s competitiveness and strength in the home loan market.
Furthermore, the bank demonstrated excellent asset quality management, with its Non-Performing Loan (NPL) ratio decreasing to 2.3%, significantly lower than the industry average of 2.9%. The bank also maintained an NPL coverage ratio that is the second-highest in the industry, demonstrating a strong commitment to risk management and adequate provisioning.
2025: Expanding SME and Home Loan Portfolios, Proactive Risk Management
For 2025, LH Bank has set a business plan focused on growth in three main business segments:
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Small and Medium Enterprise (SME) Loans: LH Bank aims to significantly expand its SME loan portfolio, focusing on medium-sized SMEs with annual revenues between 50-500 million baht in high-growth potential industries such as trading, electronics, and others. The bank will develop tailored product programs, improve loan approval processes, and build the LH SME brand.
Mr. Waravoot Tocharoentanapol, President and Head of Financial and Accounting Group at LH Bank, emphasized the bank’s confidence in the SME sector: “We are confident in the potential of the SME sector. Despite the overall economic uncertainties, we look deeper and see that the majority of SMEs are still able to operate well. Therefore, we are focusing on SMEs with growth potential and developing product programs that truly meet their needs.”
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Housing Loans: LH Bank will continue to prioritize housing loans, a core business that has consistently generated growth. The bank has set a growth target of 20% for housing loans this year, building on the impressive 12% growth achieved last year. The plan includes expanding service areas to potential cities in the provinces, developing high-yield loan products such as Home for Cash, and improving digital processes for refinancing and additional loan applications to provide customers with greater convenience and speed.
An LH Bank executive outlined the strategy for expanding the home loan market: “We will focus on customers looking to buy houses and condominiums in the price range of 3-20 million baht and expand to the 5-10 million baht segment, which benefits from the government’s LTV (Loan-to-Value) support measures. In addition, we remain committed to speed of service, with the ability to approve loans within one day.”
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Risk Management: LH Bank places strong emphasis on rigorous and continuous risk management. It is projected that the NPL ratio will remain below 3%, and the NPL coverage ratio will remain high, maintaining the bank’s financial stability.
Mr. Shih, Jiing-Fuh, Chief Executive Officer and Managing Director of Land and Houses Fund Management Co., Ltd. (LH Fund), said about risk management: “We expect the loan loss provision this year to remain close to last year’s level. This is because we had set aside provisions conservatively during the COVID-19 situation, and the majority of our customers have recovered well.”
Monitoring External Risk Factors: “Trump 2.0” Policies, Wars, and the Chinese Economy
While confident in the growth potential of the Thai economy, LH Bank is also closely monitoring external risk factors, particularly:
- “Trump 2.0” Policies: If Donald Trump is re-elected as President of the United States and re-implements strict trade protectionist policies, it could impact global trade and the Thai economy, especially industries that rely heavily on exports to the US, such as electronics, computers and parts, automobiles, and plastic products.
- Wars and Geopolitical Conflicts: Prolonged conflicts in various regions around the world could affect global oil prices and impact international trade and investment.
- Chinese Economy: The slowdown of the Chinese economy could affect demand for Thai products and may lead to an influx of Chinese goods into ASEAN markets, increasing market competition.
LH Bank announces 5-year plan aiming for sustainable growth through six strategic goals.
LH Bank has published it’s 5 year plan (2025 – 2029). Focusing on growth through six strategic goals.
- Increasing the Net Interest Margin (NIM) by managing financial costs
- Expanding customer base with value added products and services.
- Increasing income from fees.
- Cross selling through utilization of business partners.
- Utilizing digital technology and AI.
- Sustainable banking practices.
The goal is to stay competitive in the ever changing financial enviroment.
To reach these goals, LH Bank is focusing on the following key areas: Large and medium-sized corporate clients (Conglomerate & Mid Cap), small and medium-sized business clients (SME), international business clients (International Business), transactional banking and payment services (Transactional Banking & Payment), retail lending (Retail Lending), and branch services and wealth management (Branch Banking & Wealth Management). The main goal is to expand the customer base in all groups, increase revenue, and improve operational efficiency.
For large corporate and medium-sized corporate customers, LH Bank will expand its customer base to new industrial groups such as technology and green industries. While developing transaction products and foreign exchange. In the SME sector, the focus will be on targeting potential customers in new industries. and improve end-to-end sales and credit processes, while the international customer group Utilize CTBC’s global network to expand its FDI customer base in Thailand. along with providing supply chain financing loans and business consulting services
In terms of banking services for transactions and payments, LH Bank will expand its cash management products. and improve digital platforms for both retail and corporate customers. to enhance the user experience For the retail loan group Will expand home loans in high-yield product groups. and expand personal loans through partner channels In terms of branch services and wealth management. The focus will be on increasing CASA deposits, developing new wealth management (WM) products, and adopting AI technology and data analysis to improve services.
LH Bank’s 5-year business plan reflects its vision to become a sustainably growing bank. by focusing on taking advantage of digital technology; Expanding the customer base in all groups. Developing products and services that meet customer needs. and building good relationships with business partners to create stable and sustainable growth in the long term
LH Bank is making moves on the SME and international business markets. Targeting strong loan growth in 2025
LH Bank has announced its main action plan and goals for 2025, focusing on growth in two key business areas: Small and Medium Enterprise (SME) loans and international business, including Trade Finance services, by setting challenging growth targets. along with a clear action plan Hoping to increase competitiveness and expand the customer base strongly.
Section 1: Expanding the SME loan portfolio, targeting high-potential industry groups.
LH Bank sees potential for growth in the SME market in Thailand. Therefore, the goal for SME loan growth was set at 1.9 times, and the target for 2025 was set at 1.2 times, or a growth of 16% from the outstanding loan balance. It is expected that SME loan balances will increase to 27 billion baht.
In order to achieve this goal, LH Bank has the following proactive action plan for 2025:
Launch new products Targeting target industry groups: LH Bank is preparing to launch new SME loan product programs. Designed to meet the specific needs of each industry. Industries with high growth potential will be selected. To ensure that the loan products that are released can truly meet the needs of customers.
Expanding the “Amata City” branch: LH Bank plans to expand its “Amata City” branch, a branch located in Amata City Industrial Estate. Chonburi Province By March 2025, this branch expansion will allow LH Bank to access SME customers in industrial areas more closely. and provide services more efficiently
Creating the LH SME brand: LH Bank will carry out intensive marketing and branding activities. through selected channels To build awareness and credibility for the LH SME brand among target customers. Building a strong brand will help LH Bank attract new SME customers. and retain existing customers
Restructuring the organization Increase sales team potential: LH Bank will restructure the new organization. It focuses on developing the skills and abilities of sales staff. to increase efficiency in finding new SME customers according to the set goals Having a strong sales team will help LH Bank expand its SME customer base quickly and efficiently.
Section 2: Penetrating the international business market Joining hands with CTBC to expand the customer base
LH Bank It not only focuses on domestic growth. It also places importance on expanding international business. especially Trade Finance services, with a growth target set at 1.5 times and a target for 2025 set at 1.4 times, or a Trade Finance amount of 15 billion baht.
Key action plans to drive the growth of international business and Trade Finance in 2025 include:
Joining forces with CTBC: LH Bank will leverage CTBC’s strong international network and customer base. which is expected to be a partner bank or parent company To build a large portfolio in the global tech manufacturing supply chain, partnering with CTBC will enable LH Bank to reach new customer groups abroad. and expand the scope of services widely
Elevating customer experience with e-Banking: LH Bank will provide Trade Finance services through smart application forms on the e-Banking channel to increase convenience, speed, and ease of transactions for customers. Improving customer experience through digital channels will help increase satisfaction and attract new customers. to use the service
Launching new Trade products: LH Bank plans to launch new Trade products. To meet the diverse needs of customers and increase competitiveness in the ever-changing Trade Finance market
The action plan and main goals of LH Bank in 2025 reflect its commitment to expanding its business strongly and sustainably. Both in the SME market and international business market. by emphasizing taking advantage of cooperation with partners (CTBC), developing new products and services. that meet the needs of customers, improving service channels to be modern and efficient; and building a brand to be known and accepted in the target customer group
67, improving credit rating – growing loan portfolio – paying attention to ESG while expanding customer base
Land and Houses Bank (LH Bank) reveals its key strategic achievements for 2024, emphasizing its financial strength and sustainable operational growth. Covers portfolio management Expanding the customer base and conducting business according to ESG (Environmental, Social, and Governance) principles, being able to create outstanding results in many areas. Amid the challenges of economic conditions
- Quality loan portfolio: Strong and sustainable growth
LH Bank has been successful in managing its loan portfolio to grow qualitatively. Along with balanced risk management The operating results are outstanding in the following areas:
Credit rating increased: Leading credit rating agencies both domestically and internationally recognize LH Bank’s financial strength, with TRIS Rating upgrading LH Bank’s credit rating from “A” to “AAA” and its parent company LH Financial Group ( LHFG) from “A-” to “AA+”, while Fitch Ratings maintained the credit ratings of both LHFG and LH Bank at “AA+”, reflecting high financial reliability and stability. Loans grow above the market: LH Bank’s overall loans grew 7%, significantly higher than the industry average, which was negative 1%.
The main driving factor was the growth of home loans, which was as high as 12%, or a value of 6 billion Baht (YoY) compared to the industry growth of 3% Expanding the Taiwanese customer base: LH Bank has been successful in leveraging CTBC’s network (expected to be its parent company or business partner) to expand its customer base and increase its revenue from foreign exchange (FX), with loans in the business group.
Related to Taiwan (TWN) grew exponentially by 43% YoY from 8 billion baht to 12 billion baht, and Trade Finance outstanding from the TWN group grew 33% YoY from 2.3 billion baht to 3 billion baht. Adjusting the loan portfolio ratio: LH Bank has adjusted the loan portfolio ratio towards the retail customer group more, from 22% to 23%, reflecting an attempt to diversify risk and increase growth opportunities. Managing NPL effectively: LH Bank is able to manage non-performing loans (NPL) to a low level of only 2.3%, which is significantly lower than the industry average of 2.9%.
This demonstrates efficiency in credit risk management. Expanding the SME market: Not only focusing on large loans, LH Bank expands its market to SMEs by using industry intelligence to find potential SMEs and launching new loan products such as Soft Loan, Green Transition Loan to meet the needs of a variety of customers.
- Expanding customer base – increasing fee income – driving with digital
LH Bank Focuses on expanding its customer base and increasing fee-based income. Along with using digital technology to develop products and services The key operating results are as follows:
Increased retail customers: The number of LH Bank retail customers increased by 11% to 269,000 people in 2567, driven by successful marketing campaigns such as “B-You Wealth” and “Nont Tanont”. Fee income grows: Mutual Fund Fee income increases by 8% from Relationship Manager (RM) advice and the PROFITA application, while Bancassurance fee income increases by 11%. FCD volume increased: LH Bank was successful in increasing the volume of Foreign Currency Deposit (FCD) through new campaigns and the use of digital channels. FCD balance increased by 52% YoY from 3.1 billion baht to 4.7 billion baht.
- Commitment to sustainable business operations (Sustainable Banking)
LH Bank Giving importance to conducting business sustainably There are outstanding achievements in the following areas:
Sustainable loan growth: Sustainable loan increased 1.8 times to 2.2 billion baht through green loans and sustainable-linked loans. Building cooperation: LH Bank has built cooperation with various agencies such as EEI, MASCI and Abeam Consulting to offer green transition loans. with consulting services to customers Investing for sustainability: LH Bank has a new sustainability investment of 1.2 billion baht, bringing the total sustainability investment to 3 billion baht. Received ESG recognition: LH Bank received the ESG 100 certificate and the ESG rating of the Stock Exchange of Thailand (SET) was upgraded from “BBB” to “A”, reflecting its commitment to conducting business according to ESG principles.
LH Bank’s strategic success in 2024 reflects its financial strength, Effective risk management; Successful customer base expansion, increased fee income, and commitment to sustainable business operations. which is an important foundation for continued growth in the future Amid the challenges of both domestic and international economic conditions.
LHFG aims for strong growth in 2025! Showcasing 6 financial goals.
Land and Houses Financial Group (LHFG) clearly announced its financial goals for 2025 (LHFG 2025 Financial Targets), reiterating its commitment to strong and sustainable growth. Ready to set challenging goals in 6 key areas, covering loan expansion, interest margin management. core income increase; cost control; bad debt management; and maintaining high levels of capital.
The overview of financial goals set by LHFG reflects its intention to strike a balance between Growth and Stability by setting clear figures in each area. To be a guideline for operations and measure success.
- Loan Growth: Target growth of 7%-8%
LHFG aims for total loan growth of 7%-8%. This is challenging growth considering the economic conditions that remain uncertain. However, LHFG is confident that it can achieve this goal. This is done by using important strategies. such as expanding the customer base in potential business groups; Developing loan products that meet customer needs; and leveraging business partner networks.
Loan growth will be an important factor in driving net interest income, which is the bank’s main revenue. and will continue to affect LHFG’s profitability.
- Net Interest Margin (NIM): Target 2.2%-2.3%
LHFG aims for a net interest margin (NIM) of 2.2%-2.3%, a level that reflects its ability to manage its cost of funds and set interest rates. Loans (Lending Rate) are efficient.
Maintaining NIM at an appropriate level is important as NIM is an indicator of a bank’s ability to profit from its core business, namely taking deposits and lending. If NIM is high, it indicates that The bank can generate income from the difference between interest received and interest paid.
- Core Income Growth: Target growth of 10%-15%
In addition to net interest income, LHFG also focuses on increasing core income, which includes fee and service income (Fee Income) and other non-interest income. It aims to grow core income by 10%-15%.
Growth in core income will reduce reliance on interest income alone. and makes LHFG’s revenue structure more diverse and sustainable. LHFG plans to increase fee income from expanding its customer base, cross-selling, and developing new products and services. that has added value
- Cost/Income Ratio: Target below 50%
LHFG Focus on managing costs efficiently. It aims to have a cost-to-income ratio of less than 50%, a level that reflects its ability to control costs and increase operational efficiency
- Cost/Income Ratio: Target below 50%
LHFG is focused on efficient cost management, aiming for a Cost/Income Ratio of below 50%. This level reflects its ability to control costs and increase operational efficiency. Reducing the Cost/Income Ratio will help increase LHFG’s profitability by minimizing unnecessary expenses and improving resource utilization.
- NPL Ratio (gross): Target below 3%
LHFG places significant emphasis on asset quality management. It has set a target for the gross Non-Performing Loan (NPL) Ratio of below 3%. This is lower than the industry average and demonstrates the effectiveness of its credit risk management.
Controlling the NPL Ratio at a low level is crucial because NPLs indicate the quality of the bank’s assets and affect financial stability. A high NPL ratio suggests that the bank is at greater risk of losing money from lending.
- NPL Coverage: Target ~180%
LHFG aims for an NPL Coverage Ratio of approximately 180%. This exceptionally high level reflects a prudent approach to provisioning for potential loan losses.
A high NPL Coverage Ratio indicates that the bank has sufficient reserves to absorb potential losses from NPLs, mitigating the impact on its operating results and financial stability.
LHFG’s 2025 financial targets clearly demonstrate a commitment to robust and sustainable growth. The targets are well-defined across all key areas, encompassing business expansion, cost and revenue management, and risk management. Achieving these goals will enable LHFG to generate strong returns for shareholders and maintain long-term financial stability. The combination of aggressive growth targets (loan growth, core income growth) with conservative risk management targets (NPL ratio, NPL coverage) shows a balanced approach. LHFG is not just seeking growth at any cost; it is aiming for quality growth.
Overall Summary of the Translated News Article (Combined):
Land and Houses Bank (LH Bank) has announced its 2024 performance, showing growth against a backdrop of economic slowdown. The bank reported increased profits, loan expansion, and improved debt quality. For 2025, LH Bank plans to focus on SME and home loans, risk management, and monitoring the impacts of “Trump 2.0” policies, ongoing wars, and the Chinese economy. The bank is aiming for continued revenue and profit growth and boasts an NPL Coverage Ratio that is the second highest in the industry.
Despite numerous global economic challenges in 2025—including trade protectionism from the potential return of Donald Trump (“Trump 2.0”), ongoing geopolitical conflicts like the Russia-Ukraine war and Middle East instability, China’s economic slowdown, and climate change impacts—LH Financial Group remains confident in the Thai economy’s growth potential. The Group has announced a 2025 business plan emphasizing qualitative and sustainable growth.
2024: Strong Performance Amidst Challenges
LH Financial Group achieved solid financial performance in 2024, despite challenges in the Thai economy. Total revenue was 8.2 billion baht, with a net profit of 2.017 billion baht. While net profit was slightly down (about 2%) from the previous year, the core commercial banking business saw impressive profit growth of 18.7%, reaching 2.010 billion baht.
Key growth drivers included a 7% expansion in the loan portfolio, significantly exceeding the industry average (which was negative). Home loans were particularly strong, jumping 12% compared to the overall market’s 3% growth. This highlights LH Bank’s competitiveness and strength in the home loan sector.
The bank also excelled in asset quality management. Its Non-Performing Loan (NPL) ratio decreased to 2.3%, well below the industry average of 2.9%. The NPL coverage ratio is the second-highest in the industry, showcasing robust risk management and sufficient provisioning.
2025: SME and Home Loan Expansion, Proactive Risk Management
For 2025, LH Bank’s business plan focuses on three key areas:
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SME Loans: LH Bank aims to significantly grow its SME loan portfolio, targeting medium-sized SMEs (50-500 million baht annual revenue) in high-potential industries like trading and electronics. They will develop tailored product programs, streamline loan approval processes, and build the LH SME brand.
Voravudhi Tocharoenthanaphol, President and Head of Financial and Accounting Group at LH Bank, stated: “We believe in the potential of the SME sector. Despite overall economic uncertainties, we see that most SMEs are still doing well. We’re focusing on high-potential SMEs and developing products to meet their needs.”
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Housing Loans: LH Bank will continue prioritizing home loans, a core growth driver. They target 20% growth in 2025, building on 2024’s 12% growth. Plans include expanding service areas, developing high-yield products like Home for Cash, and improving digital processes for refinancing and loan applications.
An LH Bank executive stated: “We’ll focus on customers seeking homes and condos priced between 3-20 million baht and expand to the 5-10 million baht segment, which benefits from government LTV support measures. We also prioritize speed, with loan approvals possible within one day.”
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Risk Management: LH Bank emphasizes rigorous risk management, aiming for an NPL ratio below 3% and a high NPL coverage ratio.
Shih, Ching-Fu, CEO and Managing Director of LH Fund, said: “We expect loan loss provisions this year to be similar to last year, as we provisioned conservatively during COVID, and most customers have recovered well.”
External Risk Factors: “Trump 2.0,” Wars, and China’s Economy
While confident in Thailand’s growth, LH Bank closely monitors external risks:
- “Trump 2.0” Policies: A potential return of Donald Trump and protectionist trade policies could impact global trade and the Thai economy, particularly export-reliant industries.
- Geopolitical Conflicts: Ongoing conflicts could affect oil prices and international trade.
- China’s Economy: China’s slowdown could impact demand for Thai products and lead to increased competition from Chinese goods.
- The bank is also looking at improving internal structure and security.
LH Bank 5-Year Plan (2025-2029): Six Strategic Goals The 5 year plan includes the following.
- Increasing NIM
- Expanding the customer base with new products.
- Increase income from fees.
- Cross selling through partnerships.
- Digital Transformation.
- Sustainable Banking.
LH Bank 2025 Action Plan Focus will be put on expanding the customer base, in all groups. Improving products and services, and using technology to improve banking across the board.
LHFG 2025 Financial Targets The financial targets are as follows:
- Loan Growth 7%-8%
- Net Interest Margin 2.2%-2.3%
- Core income Growth 10%-15%
- Cost/Income Ratio <50%
- NPL Ratio (Gross) <3%
- NPL Coverage ~180%
LH Financial Group’s 2024 achievements and 2025 plans demonstrate its commitment to strong, sustainable growth, sound risk management, and adaptability to market changes. It’s performance and robust plans position it well for continued success.
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