LH Bank, a unit of Thailand's largest property development group, saw its profits more than double in 2008 thanks to healthy loan growth.

President Sasitorn Phongsathorn said net profit in 2008 stood at 240 million baht, up from 101 million the year before. Outstanding loans at the end of last year were 32.01 million baht, up 25% from the end of 2007.

Mrs Sasitorn said the bank had not yet set a growth target for 2009, as it remained to be seen what impact the government's recent property incentives would have on home sales.

The government earlier this month announced a 40-billion-baht stimulus package that includes a new personal tax deduction of up to 300,000 baht for principal payments on new home mortgages taken this year.

"Overall, we expect growth of 20% this year. Since our launch three years ago, our growth has averaged 20% to 25% per year," Mrs Sasitorn said.

Of LH Bank's total loan portfolio, 80% represents home mortgages. Among its property loans, up to 85% are to customers of the LH Group - Land & Houses, Quality Houses and Asian Property Development.

Net non-performing loans totalled just 487 million baht at the end of 2008, or 1.4% of total loans.

Mrs Sasitorn said bad loans would increase in a dull economy, but the bank expects them to be no worse than 2.5%.

source : www.bangkokpost.com