• 
• 

Published on December 4, 2007

The definition of sustainable growth for SCB is that the bank can satisfy customers, shareholders and employees.

Vichit said that even though SCB was a large domestic bank, it was quite small in comparison with overseas banks doing business in Thailand.

Because of this, asset size is an important factor for SCB's business growth and its ability to compete, and in particular for overseas expansion.

"The balance sheets of international banks doing business here are far stronger than those of local large banks, such as, GE Money, ING Bank or Scotia Bank. With strong capital reserves, they can easily operate overseas. In addition, several Chinese banks have been able to expand their business abroad supported by their enormous asset base," he added.

SCB also has plans to expand in other counties but it needs to develop a clear business strategy. Thai banks have found it difficult to expand their overseas operations without having a foreign partner, so this one avenue for SCB to explore.

The country's third-largest bank had earlier invested in a Vietnamese bank as a joint venture. However, as yet, this has not provided a satisfactory return on the investment. SCB has also been looking at China for business expansion.

The bank's assets are about Bt1.12 trillion, but Vichit declined to say what he expected SCB's growth rate would be. Over recent years, it has been higher than the industry average.

He said the bank's business expansion plans for the region would be clearer next year.

SCB is to tighten its risk-management policy due to the uncertain business climate caused by external and internal factors. The bank remains concerned about the US economic outlook, which has been affected by the fallout from the sub-prime loan debacle and soaring oil prices.

In addition, the make-up of next government and its policies will be unclear until after the general election.

The bank's executive chairman said SCB would continue to introduce new services for customers.

SCB plans to increase the number of its "World Class" branches next year. To gain the title, a branch has to meet global standards in customer satisfaction, and SCB is in the global top 10 for the category, Vichit said.

The Kingdom's oldest bank plans to open another 70 outlets around the country next year. It currently has 860.

"We want to position ourselves as a service provider, not just a bank. SCB will maintain its slogan as the 'Bank of Choice'. We want to provide services that the others can't copy. To be different, that is the concept of SCB," he added.

Somruedi Banchongduang

 The Nation