SCB takes stronger role as adviser to medium-sized firms

Siam Commercial Bank (SCB) has gradually reduced its role as a lender for wholesale customers to that of integrated financial adviser to medium-sized corporates, said Arthid Nanthawithaya, senior executive vice president.

Lending to wholesale customers this year is set at Bt40 billion to Bt50 billion and between Bt30 billion and Bt40 billion for 2014, down from Bt80 billion to Bt90 billion in the past few years, he said.

Lending to support a customer's business is not a value-added solution. The products and services of investment banking must help improve the efficiency of clients amid market volatility. Value-added services not only require less of the bank's capital but also provide good returns, he said.

"The number of initial public offerings in our pipeline this year is dramatic. Moreover, we see demand for IPOs from medium-size corporates. Demand by corporates that plan to launch property funds and infrastructure funds this year is expected to increase, especially property funds in line with projects planned for provincial markets," Arthid said.

Sopon Asawanuchit, executive vice president of SCB, said the bank had overseen 11 transactions worth a total of Bt100 billion, excluding mergers and acquisitions. The 11 deals comprised five IPOs including Nok Air and Energy Absolute, five property funds valued between Bt2 billion to Bt10 billion, and one infrastructure fund valued at Bt20 billion.

He said M&A deals involved border countries, and each deal took time. However, SCB is participating as financial adviser in about 25-30 deals this year, compared with only 20 last year.

Sopon said SCB had attempted to tap medium-sized corporates that require financial structuring, adding that the bank hoped to acquire higher fee income from this segment.