UPDATE 1-Bangkok Bank sees '08 loan growth exceeding target

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BANGKOK, Aug 11 (Reuters) - Bangkok Bank BBL.BK, Thailand's biggest lender, said on Monday it expected 2008 lending to grow more than a targetted 5-7 percent after strong growth in the first six months.

The bank, whose loan book grew 12.2 percent in the first six months, expected loan demand for working capital and new projects to remain high in the second half, but it might not grow as much as in the first half, President Chartsiri Sophonpanich said.

"Thailand's economy is expanding well, mostly in the manufacturing sector and exports, although the country has faced many problems," Chartsiri told reporters, without elaborating.

However, analysts have been pessimistic about the outlook for the bank as prolonged political uncertainty threatened economic growth and surging inflation undermined consumer confidence.

Economic growth is forecast to be 5.0-6.0 percent this year, up from 4.8 percent in 2007, according to the Finance Ministry's projection.

Bangkok Bank, a barometer for domestic industry, had total outstanding loans of 1.1 trillion baht ($32.6 billion) as of the end of June.

At 0938 GMT, shares in Bangkok Bank were up 4.2 percent at 124 baht, while the overall Thai market .SETI was 1.77 percent higher. ($1=33.72 Baht) (Reporting by Manunphattr Dhanananphorn; Writing by Arada Therdthammakun; Editing by Alan Raybould)