Maybank Kim Eng targets growth through two main businesses

Maybank Kim Eng Securities (Thailand) will continue expanding its customer base and market share though two key businesses - securities and investment banking - in line with the group's vision of becoming a regional financial powerhouse ahead of the Asean Economic Community.

Chief executive officer Montree Sornpaisarn said yesterday that the securities business was the main driver last year, accounting for 90 per cent of total revenue of Bt3.26 billion. Interest income followed with 5 per cent and investment banking with 3 per cent. Net profit improved by 12.87 per cent to Bt738 million.

MBKET aims to add 20,000 customers to its current 120,000 accounts to build up its market share from 12.5 per cent at end of January and 11.86 per cent last year. Local investors are its major customers at 17 per cent of the total. Local institutions are 4-4.5 per cent and foreign institutions 2-2.5 per cent.

Thanks to Maybank Group, its largest shareholder, MBKET can be a strong brokerage and financial-services provider, Montree said.

Maybank Group supports global wholesale banking, which is ready to assist through loans Thai firms wishing to invest abroad. Last year, Maybank Group lent 500 million Singapore dollars (Bt12.5 billion) to Thai Beverage Group.

Pipeline

In its investment-banking pipeline are at least five initial public offerings, two or three infrastructure funds and two or three property funds or real-estate investment trusts with total capital of Bt10 billion.

Its securities business plans to widen its retail customer base and boost market share from 11.86 per cent to 12-13 per cent in 2013, said Boonporn Boriboonsongsilp, CEO for retail business. The company plans to open three or four branches in Bangkok and upcountry.

In derivatives, the company hopes to launch at least 100 contracts especially for savings bonds to provide more options to investors.

It will join forces with Maybank Group to provide services in foreign derivatives in the second half. After launching offshore trading last year, the company received good feedback from investors.

It will actively provide more information on these services to investors.

It will broaden its presence in the private-fund market to support its private-wealth business. Investment financial-advisory services will be another focus. It will become a bigger player in debt securities and agricultural-commodity futures trading in the country, Boonporn said.

Besides providing customer services, the company will grow its institutional customer base, she added.