Krungthai Bank aims for return to Bt2 tn assets
KRUNGTHAI BANK (KTB) aims to raise its asset value back to Bt2 trillion mainly through lending to provincial markets, especially border-trade activities in 18 provinces.
KTB has total assets of Bt1.9 trillion, down from Bt2 trillion in 2015 due to a significant loan drop. But Payong Srivanich, president of KTB, believes that his bank can return to Bt2 trillion in the next few years after it adjusted its strategies.
He said as a hybrid bank, KTB had more advantages over its rivals, and it could drive loan growth through government policy and through a greater branch network in provincial markets, especially in cross-border provinces.
KTB could be the lending hub for small and medium-sized enterprises in cross-border provinces and the transactional hub to businesses from Thailand to CLMV countries (Cambodia, Laos, Myanmar and Vietnam), he said.
“CLMV alone is not our target but we will use our branch network in the provinces, especially the 18 provinces where we are close to border trade and special economic provinces, to enhance lending growth,” he said.
KTB will also focus more on area-based financing, which involves sending teams to study the 18 provinces and find potential segments for the bank to target, Payong said.
The bank has around 300 branches in the 18 provinces.
He said that the provincial market was also the focus of the bank in terms of making its wealth management better. He said KTB would use its investment-led strategy to attract wealthy customers, adding that wealth management strategies provided by financial institutions were still red-carpet strategies, resulting in a growth gap in this segment.
Most SME transactions in border provinces involve cash, he said. So if KTB can drive electronic payments or support SMEs by giving them capital to increase their business efficiency, KTB could be the go-to bank for them in managing their liquidity when they have more wealth, he added. He said that as a hybrid bank, a KTB mission is to be the lender to support government policy, with the margin of lending directly to the government small.
He said given the flow of private investment had not come yet, the bank must mix up its portfolio in the area of base financing.
