Mr. Shih Jiing-Fuh, President of LH Financial Group Public Company Limited or LHFG, revealed the overall performance for the first half of 2022 of Land and Houses Financial Business Group that it continued to grow in line with gradual economic recovery and ease of various measures from better development of COVID-19 pandemic. In the first half of 2022, Land and Houses Financial Business Group recorded the net assets of Baht 274,298 million, increasing by 3.7 percent from 2021. Operating profit was equal to Baht 2,188 million, increasing by 3.4 percent year on year and net profit stood at Baht 745 million.

        As for the business direction of the Land and Houses Financial Business Group, the goal is to be a financial institution with sustainable growth and transform the organization with digital transformation and is determined to strengthen the sustainable finance by integrating environmental, social and governance factors (ESG) through the credit policy according to the sustainable banking guidelines - responsible lending of the Bank of Thailand and promoting green financial products including effective risk management and development of the potential of the group to be resilient as to support the sustainable growth of both customers and societies.

        Ms. Chompoonoot Pathomporn, Chief Executive Officer and President of Land and Houses Bank Public Company Limited or LH Bank, disclosed that LH Bank's performance in the first half of 2022 was considerably solid. Particularly, loans expansion in all segments rose 8.9 percent from the end of 2021. Corporate business loan showed 7.2 percent growth mainly from housing loan and personal loan. Furthermore, the Taiwanese customers had a significant expansion of 49.8% and Trade Finance loan surged 68% from the end of 2021, in line with Thai export-import business which signaled high growth potential, coupled with the strong support from CTBC, No. 1 private bank in Taiwan, major shareholder. In addition, the bank also places the great emphasis on tailoring various forms of assistance for customers affected by COVID-19 pandemic to suit their needs so that they can continue operating their business, which will result in a better economy of the country eventually.

        In the first half of 2022, the bank's operating profit was Baht 1,843 million, rising by 5.9% year on year, due mainly to the increase in net interest income of 15.7 percent and from being an insurance agent which edged up 41.6%. However, the bank still set aside provisions for expected credit losses on a conservative basis to support loan growth and potential impacts from the end of relief measures. As a result, the coverage ratio stayed high at 196%, and NPL Ratio declined to 2.40 percent by the second quarter of 2022 from 2.44% at the end of 2021. The capital remained strong with the total capital adequacy ratio to risk-weighted assets (BIS Ratio) of 16.4 percent, which was higher than the Bank of Thailand’s requirement. After provision, the bank reported the net profit of Baht 431 million.

        At the beginning of the year, the bank rolled out the Profita application equipped with critical features that responded to the needs of customers in every timing of investments, facilitated the buy-sell-switch of funds 24 hours a day, and filled with recommended funds including market analysis with the comparison of up to 15 funds at the same time. Moreover, the bank is in the process of developing a new service on the Profita platform, namely ROBO Advisor service, an investment planning service and automated portfolio management designed and selected by experts in the field. Customers can customize their portfolios to have automatic adjustment of the investment portion or set the alert system to make their own decisions. ROBO Advisor service is expected to launch in the fourth quarter this year.

        In terms of strategy, the bank continues to develop digital infrastructure and platform to enhance competitiveness and match with customer behaviors and their needs under the customer centric concept that centers around them. Moreover, the best products and services have also been tailored and offered for customers in every segment, especially the Pro-Fit Digital Savings that customers are highly interested thanks to its convenience in opening an account via LH Bank M Choice Mobile Banking- application, making deposits shored up 121.8 percent higher than the same period last year and the number of users has increased exponentially.

        Mr. Monrat Phadungsit, President of Land and Houses Fund Management Company Limited or LH Fund, revealed the operating results for the first half of 2022 that the company reported the net profit of Baht 48 million, decreasing by 16% year on year due to negative investment market sentiments. Therefore, the company has adjusted its investment strategy to minimize the impacts on unit holders.

        Regarding the performance of fund management, the company manages real estate investment trusts (REITs) with asset value of approximately Baht 58,124 million, private fund with a fund size of Baht 13,025 million, and provident fund (PVD) with a fund size of Baht 5,747 million. The company focuses on growing the private fund and long-term investment. As a result, private fund has grown in size by approximately Baht 3,600 million, or increasing by 38% from the end of the year 2021, and has developed digital service channels to make transactions more customer-friendly and manipulated a variety of mutual funds to meet the needs of customers and catch up with the market conditions, especially the principal-protected mutual funds which have low volatility compared to over-the-counter investment markets such as private equity fund and private real assets fund.

        Having been guaranteed the use of innovations for success, the company won the “Excellence in Innovation Awards under the House Category” from Fund Selector Asia Awards Thailand 2021 and in 2022, LH Fund has 51 funds rated by Morningstar (as of 30 June 2022).

        Mr. Kant Athatamsuntorn, President of Land and Houses Securities Public Company Limited or LH Securities, reported the operating results for the first half of 2022 that the company had the total revenue of Baht 316.5 million, rising by 2.7 percent year on year. There was a significant increase in non-fee income from other businesses such as interest income from customer expansion, profit and return on financial instruments and other incomes, totaling Baht 211.4 million, increasing by 11.4 percent, fee income of Baht 105.1 million, decreasing by 11.2 percent following the decline in stock market and net profit of Baht 138.1 million, increasing by 0.2 percent, when compared to the 6-month period of 2021.

        The company's strategy continues to focus on expanding its customer base through the use of Big Data, adding more service channels through digital platforms such as online account opening and KYC with facial recognition, increasing customers in mass segment, where the company has expertise, with outstanding growth in Thai financial market as well as bringing the expertise of CTBC Bank, major shareholder to help develop new investment products that meet the diverse needs of customers. In doing so, the company will generate other incomes apart from fee income.