Sets 9% loan growth target via 5-step plan
Bank of Ayudhya this year will focus on expanding its corporate and SME business through the support of its new strategic major shareholder, the Bank of Tokyo-Mitsubishi UFJ (BTMU), a subsidiary of Mitsubishi UFJ Financial Group (MUFG), while reinforcing its leadership position in consumer finance.
Krungsri chief executive officer Noriaki Goto said it had set a loan-growth target of 9 per cent, which will be achieved through five strategic priorities. These are expanding corporate and SME business, maintaining leadership in consumer finance, building a solid deposit base at optimal cost, strengthening its position in the under-banked segment, and capturing opportunities arising from the rapid development of the CLM countries (Cambodia, Laos and Myanmar).
The bank plans to increase its share of corporate lending to Thai, Japanese and other multinational companies by utilising MUFG’s global network and international banking expertise. Specifically, Krungsri will focus on supporting its clients’ international expansion in the Greater Mekong region; expanding products and services to clients’ supply chains; and cross-selling retail banking services to clients’ management and employees.
For small and medium-sized enterprises, Krungsri will focus on building stronger brand awareness among its target prospects. At the same time, Krungsri will leverage its business units’ strength in consumer finance to offer broader financial solutions, as well as improve the efficiency of the loan-application process and approval turnaround time.
“In a highly competitive deposit market, we will focus on building a solid deposit base through a holistic approach,” Goto said. “This will entail offering a total financial solution model targeting both individual and corporate clients.”
Last year, through CFG Services (Srisawad Ngern Tid Lor), Krungsri expanded its product offerings by providing unbanked and underserved small-business owners access to loans. CFG plans to strengthen its business position further this year by expanding its service network and introducing more products.
“Krungsri is preparing to grow in tandem with the rapid development of the CLM countries, through the support of BTMU,” he said. “BTMU currently has presence in 13 key markets in Asia and Oceania, including Cambodia, Myanmar, Vietnam, Malaysia, Singapore, Indonesia and the Philippines.
“Given the challenging domestic economic environment, we aim to support our strategic priorities through prudent lending practices and effective risk management to ensure quality growth,” he added. “In parallel with the implementation of our five strategic priorities, we are working on integrating the business of BTMU Bangkok branch with Krungsri. The integration will take around one year to complete.”
On December 18, Krungsri became a strategic member of MUFG, Japan’s biggest and one of the world’s largest financial groups, after its banking unit BTMU acquired just over 72 per cent of Krungsri’s total outstanding shares. The Ratanarak Group maintained its 25-per-cent shareholding.