LH Bank has set an ambitious goal to achieve a 50% expansion in its international loan portfolio by 2026, building on significant growth recorded in the first half of the current year. This strategic push aligns with anticipated shifts in foreign direct investment (FDI) and international trade flows towards Southeast Asia, with Thailand expected to be a key beneficiary, particularly from Chinese investment.
LH Bank’s International Loan Expansion
The bank’s president and chief executive, Shih Jiing-Fuh, announced the target, highlighting a 27% surge in international loans during the first six months of the year. This brought the outstanding international loan portfolio to 23 billion baht by the end of the first half of 2026. Consequently, international loans now represent 8% of LH Bank’s total loan book, an increase from 6% at the close of the previous year. The bank aims to further elevate this proportion to 10% by 2027.
Drivers of International Growth
Mr. Shih attributed the robust growth in international lending primarily to investments in critical sectors such as digital infrastructure and artificial intelligence. These investments are further bolstered by the Thai government’s investment promotion initiatives, spearheaded by the Board of Investment (BoI).
Evidence of this trend is seen in the BoI’s first-quarter figures for 2026. Investment promotion applications reached 623 projects, with a combined value of 1.02 trillion baht, marking a substantial 142% year-on-year increase. The digital sector was a dominant force, accounting for 86% of the total investment value, amounting to 874 billion baht – an astonishing 823% jump from the previous year.
Overall Lending Performance and Strategy
Beyond its international banking success, LH Bank reported strong overall lending expansion. During the first half of 2026, total outstanding loans grew by 9.1% year-to-date, reaching 364 billion baht. This growth was well-distributed across all business segments:
- Corporate and conglomerate loans saw a 10% increase.
- Retail loans expanded by 10.3%.
- Commercial and small and medium-sized enterprise (SME) loans grew by 6.6%.
The bank’s performance was further supported by increased FDI inflows, cross-border trade, and export activities, which also contributed to a significant rise in fee-based income. Revenue from trade finance experienced a remarkable 148% increase, while foreign exchange income rose by 75% in the first half of the year.
Focus on SME Support
Looking ahead to the second half of the year, LH Bank plans to intensify its focus on expanding its SME lending business. This initiative follows a 6.6% growth in SME loans during the first six months, significantly outpacing the broader banking industry’s loan growth of just 1.8% during the same period.
To facilitate this expansion, LH Bank is preparing to introduce 14 new financial products and programs specifically designed to support local SMEs. Additionally, the bank is actively offering SME loans under the Bank of Thailand’s credit support schemes, including SME Credit Boost and SME Secured Plus, aimed at enhancing liquidity for small businesses.
Financial Outlook and Risk Management
LH Bank’s strategic business plan anticipates a total loan growth of 10-12% for the full year. A key objective within this strategy is maintaining the bank’s non-performing loan (NPL) ratio at no more than 3% by the end of the year. Currently, the NPL ratio stands at 2.56%.
The bank’s proactive approach to international loan growth, coupled with its comprehensive support for SMEs and robust overall lending strategy, positions it to capitalize on evolving economic landscapes and geopolitical shifts in the region.
