Jul. 14--Land and Houses Retail Bank plans to delay its public offering to 2010.

LH Bank president Sasithorn Phongsathorn said the bank established LH Financial Group as a new holding company owning 100 percent of the bank.

LH Financial Group would be listed on the Stock Exchange of Thailand sometime in the first half of 2010, pending approval from the Bank of Thailand.

Registered capital is expected to rise to five billion baht from 2.6 billion now, either through a private placement with a strategic partner or a share offering to the general public, depending on market conditions.

"A strategic partner is not a prerequisite for raising funds. We can do it on our own. The bank will wait to see clarity in the global financial environment before making a decision on a strategic partnership," said Mrs Sasithorn.

LH Bank, she said, has seen profitability improve steadily over the past several years. The bank, a unit of property giant Land and Houses, posted a first-half profit of 52 million baht, compared with 2008 profits of 240 million and 101 million in 2007.

Mrs Sasithorn said the bank has also petitioned the central bank to upgrade its licence to a full-service commercial bank.

LH Bank however will continue to focus on domestic financial services, namely mortgages. Home mortgages currently account for 80 percent of the bank's loan portfolio of 33.5 billion baht.

The bank yesterday signed an agreement with Krung Thai Bank to offer transaction services to LH Bank clients through KTB's branches and ATMs.

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