ballobh kritayanavaj senior vice president gh bank – thailand
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Workshop on Housing Finance. “ Housing Finance Market in Thailand”. Asia Pacific Union for Housing Finance (APUHF) Ulaanbaatar, Mongolia 26-29 June 2011. Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand. 1. Residential Mortgages in Thai Economy. - PowerPoint PPT PresentationTRANSCRIPT
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Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand
“ Housing Finance Market in Thailand”
Workshop on Housing Finance
Asia Pacific Union for Housing Finance(APUHF)
Ulaanbaatar, Mongolia26-29 June 2011
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Residential Mortgages in Thai EconomyResidential Mortgages in Thai Economy
Items 2004 2005 2006 2007 2008 2009 2010
Residential Mortgage
Outstanding (RM)1,055,084 1,220,394 1,351,182 1,443,435 1,566,440 1,715,584 1,873,784
All Types of
Loans(AL)6,891,809 7,477,571 7,756,122 8,137,489
9,6902,23
10,390,417 11,802,544
GDP at current price 6,489,476 7,092,893 7,844,939 8,525,197 9,080,466 9,041,551 10,102,986
RM : AL (%) 13.9 16.3 17.4 17.7 16.2 16.5 15.9
RM : GDP (%) 16.3 17.2 17.2 16.9 17.3 19.0 18.5
Source : Bank of Thailand Unit : Million Baht
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GDP VS New Home Loan Growth Rates in Thailand
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Housing Completion in Bangkok Housing Completion in Bangkok and Metropolitan Regionand Metropolitan Region
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Newly - launched Housing Units - Bangkok and Vicinity
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Newly - launched Housing Units - Bangkok and Vicinity
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New Home Loans in ThailandNew Home Loans in Thailand
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Market Share of New Home LoansMarket Share of New Home Loans
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Home Loans Outstanding in ThailandHome Loans Outstanding in Thailand
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Market Share of Home Market Share of Home Loans OutstandingLoans Outstanding
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GH Bank GH Bank
Established in 1953,
under the Ministry
of Finance (MOF)State Enterprise,
solely-owned by the
governmentSpecialised Housing
Finance Institution
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GH Bank GH Bank PurposesPurposes
Assists Thai people to have their own home
Provides mortgage loans to general public,
emphasises on low and middle income groups
Operates in the banking system on commercial basis
Competes in the free financial market both in funding
and lending
No direct-funding or subsidy from the government
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GH Bank OrganizationGH Bank Organization
Assets : 678,904 million baht (2010) (Rank no. 7)
Home loans : 659,092 million baht (2010)
Deposits : 546,277 million baht (2010)
Profit : 6,353 million baht (2010)
Staffs : 2,457 (as of April,2011)
Branches : 78 branches (BMR=32, Provincial = 46) 18 mini- branches 16 mobile credit unit
26 One Stop Services 15 Off-site banking counters
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GH Bank PROFIT
Source : GH Bank
ITEM 2006 2007 2008 2009 2010
Profit(mill.THB)
2 ,328
36, 91
33,06
50,33
63,53
Profit/head(mill.THB)
1066
16.61
14
69
2.287 2.611
Bonus (salary-month)
45.5
65. 47
5
60. 65.
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GH Bank Financial Ratio
Source : GH Bank
Items 2008 2009 20102011
(April)
ROA (%) 0.51 0.74 0.93 1.34
ROE (%) 11.61 15.65 17.19 22.97
Interest Rate Spread (%) 1.63 2.39 2.34 2.5
Liquidity Ratio (%) 12 13.76 7.5 6.05
Provision NPL 44.35 54.35 65.82 69.05
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Expansion of GH Bank AssetsAssets
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GH Bank’s GH Bank’s Deposit OutstandingDeposit Outstanding
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GH Bank’s New Home LoansGH Bank’s New Home Loans
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GH Bank’s Home Loans Outstanding
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Net Interest Margin GH Bank Net Interest Margin GH Bank
VS Commercial BanksVS Commercial Banks
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Mortgage Market Leader in Thailand 34 - 40% market share (highest)
Govt’ instrument in real estate market revival and economic
growth stimulation - Government assisted- mortgage programme for first-time homebuyers- etc.
Housing Finance Infrastructure • National Credit Bureau (established in 2004, currently with 75 institutional
members and 30 million accounts)
• Real Estate Information Center, www.reic.or.th (2004)
Housing Knowledge and Education Center • GH Bank Housing Journal - Thai (1995) • Asia Pacific Housing Journal - English (2007) • Home-buying information center www.ghbhomecenter.com • Real estate professional associations (>16)
GH Bank’s role
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GH Bank Home Mortgage Lending
• Maximum loan amounts : no limit (average loan size Bt700,000)
• Loan - to - value ratios : 70 – 100%
• Loan term or repayment period
20-30 years (Borrower’s age and term loan must not exceed 70 years)
• Mortgage Rates
1.Floating rate 2. Fixed rate 3.Mixed-rate loan or hybrid mortgage
4.Special floating rates
• Mortgage interest rate ceilings GH Bank 19% / Commercial Bank 11.25% - 18%
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GH Bank Home Mortgage Lending
• Valuation fees : Bt1,700 – 2,100
• Origination Fees : 0.01% if exceed Bt500,000
• Loan analysis and approval : Credit scoring
• Property transfers 2% mortgage registration 1%
• Monthly installment payments : MRR+1%
• Loan repayment channels : Banks + other pay points e.g. 7-11
• Mortgage amortization : declining principal balance
• Prepayment penalties : First year 3%, year 2-3 for 2.5%
• Late charges : 60-day-past-due charges 13.5%
• Mortgage related insurance : fire insurance (compulsory)
mortgage life insurance (voluntary)
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Deposit Rates GH BANK VS Commercial Banks
Type of DepositGH BANK
(%)Commercial Banks
(%) Savings Account 0.75 0.75
Special Savings Account 2.00 1.00 – 2.50
Time Deposit Account
3 - Months 2.25 1.50 - 2.50
6 - Months 2.35 1.95 - 2.85
12 - Months 2.60 2.25 – 2.75
24 - Months 3.25 2.75 – 3.30
36 - Months 3.60 2.00 – 3.25
60 - Months 3.65 2.50 – 3.50
Sources : GH Bank and Bank of Thailand (BOT) as of 20 June 2011
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GH Bank GH Bank Mortgage Mortgage Interest RatesInterest Rates
Option Type of Rate RateRemainder of
Loan Term
MRR - 0.50 = 6.375%
1 Special Floating Rate
1st - 2th Year MRR - 2.00 % = 4.875 %
3th Year MRR - 1.00 % = 5.875 %
4th Year MRR - 0.50 % = 6.375 %
MRR = 6.875 %
2 Fixed Loan Rate
3-Year 6.50 %
5-Year 7.00 %
Note : Effective Date June 20, 2011
: MRR is GHB Floating Rates
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GH Bank GH Bank Mortgage Mortgage Interest RatesInterest Rates
TypeRate Remainder of
Loan Term
LTV
Ordinary Customer 2 options MRR = 6.875 %
70% - 85%
Baan Eua Arthorn
1st Year = 3.00 %
2st - 3th Year = MRR – 1.50 % = 5.25%
4th Year = MRR – 1.00 % = 5.75 %
MRR – 1.00 % = 5.75 % 100%
Social Security member
Fixed Rate
2-Year = 4.50% MRR – 1.00 % = 5.75 % 80% - 90%
Note : Effective Date June 20, 2011
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2 years 0% First Home Mortgage Programme
Total Programme Loan amount: Bt25 billion
For first- time homeowners : no homeownership
Loan limit : not more than Bt3 million
Loan period : not more than 30 Years
Loan Interest rates:
1st – 2nd year equal 0%/year
3rd – 5th year, welfare customers = MRR- 0.5%/year,
retail customers = MRR
6th year onward, welfare customers = MRR – 1.00%/year,
retail customers = MRR – 0.50%/year
Fees - transfer fee (1% from 2%) no mortgage registration fee (1%)
Programme period: May 9 – December 30,2011 (14 June fully booked)(14 June fully booked)
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Refinance-In Programme
Total Programme Loan amount: Bt5 billion
Loan interest rates (privilege) :
- 1st year = MRR - 5% - 2nd year = MRR - 2 %
- From 3rd year onwards = MRR – 1 %
For welfare customers only
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