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Published on October 17, 2007

Thanachart Bank has been instructed by its foreign major shareholder, Scotiabank, to expand more aggressively next year in both its banking business and its network of branches.

As a result, the bank is likely to set more ambitious business targets next year than it had before, said CEO Suphadej Poonpipat.

"We will possibly set an ambitious loan-growth target for next year and adopt an aggressive marketing strategy to build up the bank's brand awareness. Right now, our capital-adequacy ratio stands at 13 per cent - strong enough for business expansion," he said.

Thanachart Bank plans to open about 100 new branches around the country next year, from only 60 branches now. It will also increase its staff, presently numbering about 4,500.

Its total assets are valued at Bt279.94 billion, making it Thailand's eighth-largest bank. As of June 30, the bank's loan portfolio and deposits were valued at Bt212.08 billion and Bt204.93 billion, respectively.

Suphadej said that before the Canadian Scotiabank acquired a 24.99-per-cent stake in Thanachart, the local bank had to be prudent when considering the opening of new branches, because network expansion meant higher costs. However, with a stronger capital base following Scotiabank's investment, Thanachart Bank will expand its business with greater confidence, he said.

"Thanachart Bank will grow with stability, because of strong capital support. We will be an aggressive mid-sized bank," he said.

The Canadian bank has already joined Thanachart's business operations, and as a result of the foreign bank's strength, Thanachart's trade finance and treasury business has doubled in only a few months.

Thanachart Bank plans to develop many financial products under a universal-banking concept, Suphadej said, adding that with its stronger financial status, the bank was ready to comply with the Bank of Thailand's new regulations. These include compliance with the new Basel II international financial standard and phase II of Thailand's Financial Master Plan.

Somruedi Banchongduang

The Nation