GSB eyes steady growth, support for SMEs as AEC nears
Bank to open 90 branches nationwide
The Government Savings Bank expects steady annual growth of 7 per cent through the next five years, as it focuses on supporting small and medium-sized enterprises and promoting them to do business in other Asean countries after regional integration.
The move forms part of GSB's target of becoming a "development bank".
President Worawit Chailimpamontri yesterday said the bank was looking at gradual growth from 2013 to 2017, with its main income from loans and investment banking.
"The bank this year will open 90 more branches to expand the customer base and facilitate more clients throughout the country. The focus areas [for new branches] will be border provinces, so that we can facilitate Thai business expansion to neighbouring countries under the Asean Economic Community," he said.
This year, the bank expects loan growth and investment to continue to grow by 8.5 per cent. Assets are expected to increase by 9.5 per cent to Bt180 billion, additional deposits by 8.5 per cent to Bt134.7 billion, and loans by 8.5 per cent to Bt142.8 billion.
GSB's non-performing loans are targeted to remain at 1.15 per cent of outstanding loan value by year-end.
The institution projects net profit of about Bt21 billion for 2013, similar to last year's. It aims to generate more revenue from services and fees, accounting for 3.7 per cent of income, or Bt4.3 billion.
The state-owned bank reported that its net profit for last year had increased by Bt3.4 billion to Bt21.02 billion. It witnessed loan growth in all segments, from corporate and SME lending to retail.
Assets at year-end were Bt1.96 trillion, while deposits totalled Bt1.67 trillion, rising by 10.09 per cent from 2011.
Outstanding loans were worth Bt1.58 trillion at the end of last year.
To promote growth, the bank will extend its customer base by installing another 1,000 automated teller machines nationwide. A foreign-language function, particularly for Asean languages, will be introduced to the ATM network to facilitate foreign customers as regional integration fast approaches.
The bank also plans to support more local enterprises, especially One Tambon One Product traders, to develop their competitiveness.
Worawit said the bank would focus on assisting local communities and small traders as part of its role to develop small enterprises and promote small savings.
To promote this category of enterprise and celebrate its centenary, the bank is organising a fair from July 8-14 at Impact Muang Thong Thani. More than 700 small businesses will exhibit at the event.