Tisco banks on election this year to boost lending growth

Thailand Post and Tisco Bank yesterday launched the postman mascot to promote the bank’s new deposit service, Tisco@Post.

CEO Pliu Mangkornkanok said the bank's lending grew 7-8 per cent in the first five months of the year. The sluggish growth was due to unfavourable sentiment and political uncertainty.

However, because 70 per cent of the bank's lending is for retail goods - and most of that for auto hire-purchase - there has been no significant sign of increasing non-performing loans.

"Auto hire-purchase loans are quality liabilities," he said. "Although the sentiment is unfavourable, we managed to obtain a larger market share because our competitors are facing slower growth," he said.

Growth in Tisco Bank's lending is expected to equal last year's 17 per cent. However, Pliu said it was likely to outperform last year's effort in a "best-case scenario" of a general election happening as planned.

Last year, 60 per cent of the Tisco Group's revenues were generated from the bank's interest-rate margin, while the rest came from fees contributed by the group's securities house and asset-management firm.

Pliu said the revenue proportions might change to 50:50 this year following the stock-market hike.

He said the bank might cut its interest rates for deposits and lending another 25 or 50 basis points this year but would first have to consider the prevailing circumstances.

Separately, Tisco Bank joined forces with Thailand Post yesterday to launch Tisco@Post, a nationwide postal cash-deposit service.

The bank has 23 branches around the country and plans to open another seven this year, using the full quota allowed by the Bank of Thailand when it began operating two years ago.

Tisco Bank expects the arrangement with Thailand Post's 1,178 branches to enable customers around the country to make cash deposits. The arrangement is of mutual benefit to both parties, Pliu said.

"The bank will open branches only out of necessity. We can use the resources of Thailand Post, and in return Thailand Post will benefit from the investment it has made to create its network," he said.

Thailand Post president Ormsin Chivapruk said his organisation was negotiating with several banks to provide similar services.

Pliu said that in the early stages of the scheme, Tisco Bank would absorb all transaction expenses for its customers.

The next step is to establish a similar banking-deposit service through convenience stores, but he admitted that in a practical sense, this would be difficult to achieve.

Piyarat Setthasiriphaiboon

The Nation