CIMB Thai Bank is aggressively chasing local corporations and listed companies with exposure in Asean by restructuring its organisation and portfolio in an attempt to boost income from Asean business to 50 per cent from 30 per cent this year.
The new structure, which went into effect on April 1, consists of five groups – corporate banking, investment banking, financial institutions Thailand, credit and operating risk analytics, and strategy and support.
The bank has seven portfolios according to industry such as the Asean 1 portfolio for light industry, which cover 30 business groups, and Asean 2 for heavy industry, which includes 20-30 business groups.
Pornchai Padmindra, senior executive vice president and head of wholesale banking, said yesterday that as a small bank in Thailand but a large one in Asean, CIMB Thai should leverage its network in Asean to assist Thai companies that are expanding in Asean rather than compete with local banks in facilitating financial support to local companies.
“This strategy helps CIMBT to avoid pricing in lending activities with Thai banks. We want to grow from selective Asean-aspiration target customers,” he said.
CIMBT will not only offer loans or fund transfer services to corporations that want to establish a presence in Asean, but also ideas on business development with the right strategy in Asean.
The internal problems also encourage local corporations to look at more opportunities in Asean to diversify risk.
Under the new structure, the wholesale banking group has 120 staff, of whom 60 are relationship managers.
The bank hopes to add 30 accounts to its base of 800 accounts. The targets are companies that want to go regional and companies included in the SET 100 Index.
A corporation is defined by the bank as a company with annual revenue of Bt1 billion or above or a listed company even if its annual revenue is below Bt1 billion. CIMB’s wholesale banking group aims to extend Bt10 billion in new loans this year, representing growth of 17 per cent. Half of the new loans will be for the cross-border outbound business.
The group’s loan portfolio has passed Bt50 billion.
Last quarter, the group’s income surged 44 per cent to Bt490 million from Bt339 million in the first quarter of last year, while income from cross-border outbound activities soared 55 per cent to Bt52.78 million from Bt34.07 million.
Cross-border outbound currently contributes 30 per cent of the wholesale banking group’s income, but after the restructuring, it will account for 50 per cent by year-end, he added.