UOB Thailand forecasts zero mortgage growth

UOB Thailand expects flat growth for its mortgage portfolio this year for the first time in several decades, in line with a contraction in the property market.

- SOMRUEDI BANCHONGDUANG

According to Yutthachai Teyarachakul, country head of retail banking at UOB Thailand, this year the bank expects to maintain its total outstanding mortgage portfolio at the same level as 2024. However, the company targets year-on-year income growth in the mortgage business segment.

“We are likely to see zero growth in housing loans this year, a first after several decades of consistent annual increases,” he said.

For the mortgage business, UOB Thailand focuses on secondhand homes and the refinancing market. The bank slowed new home loan approvals in response to weakening demand in the residential segment and a contraction in the broader property market.