RHB's Thai unit plans to open 2 branches in provinces
RHB Bank Thailand plans to open two branches upcountry in areas such as industrial estates to serve both Thai and foreign companies.
Malaysia-based RHB Bank currently has a branch office in Bangkok that provides deposit, lending, trade finance and treasury services.
Thiti Musuwan, country head of the bank, said it planned to broaden its network in Thailand after the trade finance business showed impressive growth, and it was submitting the proposal to Bank Negara Malaysia, the neighbouring country’s central bank.
If approved, the new branches will be placed in provincial areas where large numbers of companies operate, such as industrial estates, as such firms are likely to undertake trade finance activities.
The bank, which currently employs 60 people, will recruit more staff to serve the new branches.
RHB Bank Thailand targets mid-sized corporates with annual turnover between Bt1 billion and Bt4 billion, and more than half of its customer base is Thai companies that pursue trade finance activities and broader trade.
The bank’s growth is mainly from trade activities, and the growing trade finance last year was a key driver of its 50-per-cent asset growth.
It projects assets growth this year of 45 per cent from Bt8 billion, while lending is expected to grow by 50 per cent to Bt6 billion.
The bank mulls increasing capital in preparation for soaring growth of lending and assets.
RHB Thailand has paid-up registered capital of Bt2 billion. Its lending limit to a single client is Bt500 million. Thiti said the provinces were a potential market for RHB Bank thanks to the upcoming Asean Economic Community, as the group considers that Thailand is an important part of the network as a link to other countries in the region.
“Thailand is strategic for RHB Group as the location of our country could be the springboard to expand trade finance activities to corporates in Asean. Therefore, RHB Thailand has to promote brand awareness strongly among corporate customers along with the branch expansion,” he said.
Outside Malaysia, RHB has branches in Singapore, Thailand, Brunei and Cambodia. Representative offices have been set up in Vietnam and Myanmar.
Thiti said the group was still looking for opportunities to acquire businesses in Thailand if doing so would strengthen its core banking business.
RHB Group recently reinforced its investment banking and brokerage business by merging with OSK Investment Bank. OSK Securities (Thailand) has been renamed RHB OSK Securities (Thailand).
