TMB Bank acts to beat competition
TMB Bank plans to expand its retail business aggressively next year through increased home loans and loans to small to medium-sized enterprises (SMEs), says CEO Subhak Siwaraksa.
The bank has restructured its organisation ahead of the launch of next year's business plan, in preparation of fierce competition expected from strategic foreign partners of other banks that are set to enter the Thai market. Speaking on the occasion of the bank's 49th anniversary, Subhak said TMB planned to become the third-largest banker in the SME market next year, in which it currently has 50,000 customers. TMB Bank will also launch a home-loan package called TMB Step, which will allow debtors to pay loan instalments that are 20 per cent below average for the first year. "Pricing will not be the main factor for running our business next year. Instead, convenience and nimbleness will play a key role in luring customers," said Subhak. The new business plan was devised under the assumption that the economy would grow 4.5-4.8 per cent next year. This assumption was based on predictions that public spending and private investment would be secure, given sustainable oil prices, controlled interest rates and faster-than-expected budget disbursements. Subhak said the bank's SME loans were targeted to grow 9 per cent, or Bt50 billion, next year after enjoying growth of 8 per cent in SME lending and 8-12 per cent in customers in the first nine months of the year. SME loans account for half of the bank's total loans. TMB enjoyed housing-loan growth of 15 per cent this year, well above the 5 per cent experienced industrywide. The bank currently has Bt53 billion in outstanding mortgage loans.Subhak said he hoped TMB Step would raise an additional Bt2 billion in housing loans in these final two months of the year and Bt5 billion next year. He said the new product was designed to breach the highly competitive property-financing market. TMB Step loans are intended to increase purchasing power, because they allow customers to pay 20 per cent less than is normally required. The monthly instalment will increase 5 per cent a year until it reaches the ordinary amount paid in the fifth year. TMB Bank's corporate loans are targeted to grow Bt12 billion next year, or 6-8 per cent.
Anoma Srisukkasem The Nation
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