SCB to reach trillion-baht milestone next year
Siam Commercial Bank (SCB)'s assets are expected to reach Bt1 trillion early next year, according to the bank's president and CEO Khunying Jada Wattanasiritham.
However, Jada said SCB would still trail the country's second-largest bank, Krung Thai Bank. SCB's current assets are about Bt900 billion. "Right now, the assets of the Kingdom's two largest banks, Bangkok Bank and Krung Thai Bank, stand at about Bt1.3 trillion to Bt1.4 trillion each. So, SCB will not become the country's second-largest bank next year," Jada said. SCB's assets last year grew 7 per cent, while Kasikornbank's rose a mere 2 per cent, allowing SCB to replace Kasikornbank as the third-largest bank early this year. Jada said SCB's asset growth would mainly occur through its subsidiaries. Its subsidiaries and affiliates include SCB Securities, Siam Commercial New York Life Assurance Plc, Siam Commercial Samaggi Insurance Plc, SCB Asset Management and Siam Commercial Leasing Plc. The latter was formerly named Siam Panich Leasing, and renamed after SCB increased its stake to 93.64 per cent. SCB is targeting Bt60 billion to Bt70 billion in new lending this year, or 10 per cent year-on-year growth, compared to an industry average that is forecast at 6-7 per cent. The bank has already extended Bt30 billion in loans in the first half and expects to lend a further Bt30 billion to Bt40 billion in the second half. Despite the bank's aggressive lending, SCB's capital base is strong enough that it can do this without having to undergo a capital increase, Jada said. The bank's capital adequacy ratio is expected to rise from 14 per cent of risk-weighted assets at the end of last year to 15 per cent in the first half of this year - far above the central bank's requirement of 8.5 per cent. Tier one capital of the country's third largest bank was 11.4 per cent at the end of June. "Despite an ambitious loan-growth target, the bank also closely monitors loan quality," Jada said. "We are [lending] carefully amid the country's uncertain economic environment," she said. Lending in the second half would go to businesses in the export, travel and service sectors in particular, she added. Although the government's mega-projects have not started yet, they will provide a boost for the banking sector when they commence, she added. Somruedi Banchongduang The Nation
|
