SCB focuses on risk management

“Growth and risk are partners of banking, but economic volatility forces operators to handle risk much more intently than before,” SCB president Kannikar Chalita-porn said yesterday.
Banking is an industry that is involved in risks, and whether banks enjoy healthy growth or not depends on risk management, she said. SCB will consider the behaviour of customers as the basis for controlling risk.
The bank will be more cautious about doing business with customers who might be risky, and will aggressively go after business from customers with good risk profiles.
However, the bank believes that even if the economy is unstable, businesses can quickly resume operations.
Thais are savers by nature, which is an advantage of the Thai economy when it comes to economic volatility.
In 2012, SCB will not see skyrocketing loan growth as it did in 2011, but will still outpace the industry or keep abreast of it, Kannikar said.
SCB is among the few banks that have reported record loan growth in the past few years. In 2010, its loan portfolio surged by 12.6 per cent, and 2011 should set an all-time high of 20 per cent.
SCB targets its loan growth next year at 10-15 per cent, against the banking industry’s projected growth of 8-10 per cent, Kannikar said.
 “If our lending is slower than the industry, that means we’re losing market share. Amid the uncertainty of the economy, we should play it safe by maintaining loan growth in line with the industry.”
The rosy growth target is based on strong demand from its customers in all segments and the good momentum in auto loans after the bank shifted to focus on the used-car market.