Bangkok Bank (BBL) chairman Chatri Sophonpanich has admitted that the bank has lost its No-1 position in some business areas amid increased competition in the banking industry.

However, he expressed no anxiety over the matter, saying the bank's main focus was quality.

"It doesn't a matter if BBL is not number one in all areas, but the bank should be number one in terms of health and quality control. The bank realises that it has weaknesses in some areas, but it is stronger in others," said Chatri, adding that he had faced tough rivals every year in the industry.

He said BBL no longer had the most branches or the highest net profit growth. But it remains top in terms of assets. BBL's assets at the end of September were Bt1.48 trillion. Krung Thai Bank (KTB) was second with Bt1.18 trillion in assets.

Before the baht was floated on July 2, 1997, BBL had the most assets of any Asian bank.

BBL is also the industry leader in terms of lending and deposits.

Net profit in the first nine months was down 15.77 per cent year on year to Bt13.8 billion. KTB was the best performer with a 11.54 per cent increase to Bt13.65 billion.

Siam Commercial Bank (SCB), the third-largest bank in terms of assets, has passed BBL to become the bank with the most branches. SCB now has 750, BBL 713.

Chatri said the bank would concentrate on overseas banking, particularly in Southeast Asia and China. However, overseas expansion will depend onBBL's capital.

"While foreign banks are parading into the Thai banking market, we should pursue business overseas. We need to go abroad as we have seen that, as a result of tough competition, there is little opportunity domestically," he said, adding that he expected competition to increase next year.

Somruedi Banchongduang

The Nation