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Published on December 21, 2007

With consolidated assets of Bt1.1 trillion, it trails both No 1 Bangkok Bank and Krung Thai Bank.

It plans to increase group loans 12-13 per cent next year.

Executive chairman and CEO Vichit Suraphongchai said the bank was not trying to leapfrog the country's two top banks, but rather would gradually grow its assets under its own strategy.

The bank's growth target for assets next year is double that for gross domestic product, which it forecasts at 5 per cent.

Despite the economic slowdown, group assets this year are also expected to increase 10 per cent, which is above average for the banking industry, he said.

Asset expansion is the key channel for SCB to build its business, particularly abroad. The bank wants to strengthen asset size to support foreign operations in the future.

Vichit also said the bank's retail business contributed 60 per cent of company revenue, the highest proportion in the industry. The retail business generates both interest and fee income, with fee income at about 35 per cent of total revenue.

The Kingdom's oldest bank now ranks first in retail banking in many areas, following an aggressive expansion over the past several years. It boasts the most outlets and ATMs, at 864 and 4,788, respectively.

Infrastructure is the foundation for consumer finance. SCB has spent about Bt10 billion on technology development over the past five years, which has been booked as an amortising asset. The bank has already recouped that investment.

Competition in retail banking is expected to intensify next year, especially with hybrid banks like Bank of Ayudhya and TMB Bank, which enjoy strong foreign shareholders like GE Money and ING Bank, Vichit added.

Somruedi  Banchongduang

 The Nation