Mr. Shih, Jiing-Fuh, president of LH Financial Group Public Company Limited or LHFG, said “In the first half of 2024, Thai economy continues to grow mildly from the domestic consumption and strong tourism. Yet, both public investment and private investment are slow due to the delay in the fiscal budget approval of government and sluggish exports. Thai economy in the second half of 2024 is expected to improve from the first half in view of the gearing up of public spending, investment and growing FDI.

        Land and Houses Financial Business Group will continue to emphasize sustainable banking, focusing on reducing greenhouse gas (GHG) emissions from both its own business operations as well as supporting our customers’ green or transformation projects. In 2024, the company was selected as a company with outstanding performance in environmental, social and governance (ESG100) for the 9^th year and included in the ESG100 universe by Thaipat Institute.

        The performance for the first half of 2024, Land and Houses Financial Group reported the net profit of Baht 890.7million, a decline of 25.9 percent YoY and net operating profit before expected credit losses in the amount of Baht 1,990.0 million, a decrease of 19.6 percent YoY, mainly as a result of reduced investment dividends as the Group continues to divest securities investment and re-deploy all capital into core business.

        In the first half of 2024, LH Bank's net interest income grew well through expanding the loan portfolio customer base in both retail and juristic customers. The bank posted the profit of Baht 846 million, a decrease of 10.3 percent YoY mainly due to reduced dividends income for the same re-focus initiative of LHFG. Loan grew by 8.7 percent YoY compared to the same period in 2023 due mainly to the increase in retail loan, corporate loans and Taiwanese customers. Taiwanese customers surged to 31 percent through cooperation with CTBC Bank, number 1 private bank in Taiwan and major shareholder of the group. In addition, trade finance also grew by 19 percent. The bank controlled NPL at 3.0 percent, with conservative provision for doubtful accounts. NPL Coverage stood at a high level of 188 percent, higher that the industry average.

        As for deposit, the bank enlarged its customer base by 22 percent YoY through digital banking channel and introduction of various new deposit products such as digital savings B-You Wealth with maximum interest rate of 5.55 percent, digital savings product campaign with free rabbit card, LH Bank Success Infinite Prestige Collection, retail foreign currency deposit (FCD), LH Bank Health Care Saving and tiered rates business savings.

        For business direction for the second half of 2024, the bank aims to continue growing mortgage loan market and driving growth of SMEs sectors. The bank is re-building Corporate E-Banking and mobile banking for more efficient services, streamline credit underwriting processes and be sustainable banking that conducts the business with accountability for environmental, social and governance and effective risk management. The bank also offers the financial products that meet environmentally-friendly needs. Recently, the bank has partnered with the Electrical and Electronics Institute, "EEI" and the Industry Development Foundation, Management System Certification Institute (Thailand), “MASCI”, and ABeam Consulting (Thailand) Co., Ltd., “ABEAM”, a leading global business consulting company, to carry out the “Green Transition Advisory Loan Project”. It is a collaboration to help transform Thai SMEs to be able to adapt and sustain amid increasing global ESG compliance needs.

        Mr. Monrat Phadungsit, president of Land and Houses Fund Management Company Limited or LH Fund, said “In the first half of the year, the company adjusted the fund management operations by putting the emphasis on data analytics and master fund switching to be in line with current market conditions as well as increase the opportunity to create better performance than ever. Real estate investment trusts (REITs) continued to have sound performance, especially the REIT, hotel and retail space, namely LHHOTEL, LHSC and QHHRREIT, which gained benefits from tourism sector's rebound.

        In the second half of 2024, the company continues to grow private funds, provident funds, conversion of REITs under management and puts the focus on ESG to generate sustainable returns for mutual funds and REITs investors. For provident fund, the company has consistently won mandates from corporate customers resulting in constant growth of provident funds, The company has also developed the Life Path system to support and allow investors to automatically rebalance portfolios.

        Mr. Kant Athatamsunthorn, president of Land and Houses Securities Public Company Limited or LH Securities, mentioned that the Thai Stock Market Index (SET Index) for the first 6 months of 2024 declined by 8.1% to 1,300.96 points when compared to the end of 2023 and foreign investors continued to be a net seller with total net sales of Baht 115,983 million, with the average daily turnover of Baht 45,238 million, a decrease of 22.5 percent YoY. The factors that put pressure on the index included domestic and overseas politics, stance of the US Federal Reserve to keep interest rates high for a longer period of time.
           
        In the first half of 2024, the company had total income of Baht 158.8 million, down from the same period of 2023, mainly from securities brokerage income that shrank significantly following the Thai stock market trading volumes, down by 22.5% YoY. In the 3^rd quarter, the company will launch a financial advisory (FA) business to further its integrated services to customers well as enhanced technology services through a digital platform as to build customers’ engagement and effective cost management amidst the volatile bourse market with weak trading volume.