CIMBT loses out as home loan refinancing heats up

CIMB Thai Bank (CIMBT) is losing market share in mortgage refinancing as competition intensifies amid sluggish growth for new housing loans.

- SOMRUEDI BANCHONGDUANG

CIMBT’s mortgage refinancing market share fell to around 16% from 20% last year after other banks shifted their focus from new home loans to refinance, said head of consumer banking Tanawan Chiaranant.

Given the slow growth of the Thai economy, a sluggish property market, and the recent earthquake in Bangkok, demand for new home loans declined, prompting banks to emphasise the refinance market.

“Mortgage refinance is a strategic business of CIMBT. Despite the decline in market share, our share of 16% is considered a satisfactory level amid tougher competition,” said Ms Tanawan. “We expect to maintain this share for the rest of the year.”