TMB focuses on lending to exporters to bolster sector in tough times
TMB Bank chief executive officer Boontuck Wungcharoen believes the export situation still has good momentum, and the bank wants to lend more to exporters, as the country relies on this sector to drive economic growth.
Export represents 75 per cent of gross domestic product, Boontuck said. Other economic drivers such as government investment need time to have positive effect, while domestic consumption will increase gradually as incomes are better distributed among the population.
He said TMB wanted to build its export loan portfolio by adding attractive features for supply-chain solutions for exporters and their suppliers.
"Everyone knows the export [situation] is not good, but the challenge for us is how to help customers increase efficiency and lower costs. We must improve financial products and services to help customers during these difficult times, so supply-chain solutions are our focus because they can help the competitiveness of our customers," he said.
TMB has strongly promoted its supply-chain solutions in the past two years to increase customers’ financial liquidity. Major companies such as Siam Cement Group, PTT and Boon Rawd Brewery have used the programmes.
The bank will launch one-day service for business customers, who will be able to get their cheque deposits cleared after only one day, compared with three days normally.
Boontuck said the economic slowdown was a challenge for the bank because TMB had projected loan growth of 15 per cent for this year but recorded only 6 per cent in the first half, meaning it must boost loans by 9 per cent in the second half.
It has not changed the loan-growth target because client activity in the second half is higher than in the first half.
Piti Tantakasem, chief wholesale banking officer, said about 20-25 per cent of TMB’s lending was involved with the export and agricultural sectors, but the two portfolios were very sensitive to global economic volatility.
"Customers have taken out fewer loans in line with the declines in their activities, especially agricultural lending, which is 20 per cent of the bank’s portfolio," he said.
Boontuck agreed that export volumes from agricultural products such as rubber and cassava had dropped in line with the global situation.
