BAY aims to raise international income

Mr Pairote said Krungsri would support customers, especially small and medium-sized enterprises growing in the region, through business matching programme.

Bank of Ayudhya (BAY), under the marketing brand of Krungsri, aims to increase net income of international business to 10% by 2023 under the bank's mid-term business plan.

Presently, Krungsri is present in five Asean countries -- Cambodia, Laos, Myanmar, Vietnam and the Philippines -- in several forms, including foreign branch, representative office, local bank and local financial service provider.

After starting regional business operations in 2014, the net income of regional banking business accounts for 4% of Krungsri's total net income and targeting to increase to 10% in 2023, said Pairote Cheunkrut, Krungsri's chief strategy officer.

Mr Pairote added that as it upgrades to a regional bank, Krungsri has been searching for new opportunities and investments in Asean through organic and inorganic growth.

There are some inorganic deals in the pipeline. Under the mid-term business plan during 2021-23 for regional business expansion, the bank aims to be present in all 10 Asean countries through different business models.

"We're going on a regional bank journey and targeting having a footprint in all 10 Asean countries in different forms depending on regulations, business opportunities, market competition, customer demand and behaviour," Mr Pairote said.

BAY, the country's fifth largest bank by total assets, has also been supported by major shareholder, Mitsubishi UFG Financial Group (MUFG), to grow in the regional market under solid global networks and products of the Japan-based shareholder.

MUFG is present in 50 countries with 2,500 networks worldwide, including seven Asean countries with 20 networks.

Given the high growth potential of Asean, the region's strong connectivity and digital banking development of the regional market, the bank plans to grow regionally through the two core strategies -- taking Krungsri beyond Thailand and taking customers beyond Thailand, he said.

Krungsri received a commercial bank licence in Cambodia serving both consumer and commercial loans under Hattha Bank after expanding into Cambodia, the first Asean market, in 2014.

Currently, Hattha Bank has total outstanding loans of $1.32 billion with 469,000 customers. There are 177 branches, 137 ATMs and 30,000 users of the mobile banking app.

In Laos, Krungsri has two branches offering retail loans with total outstanding debt of 5.2 billion baht from 27,200 customer accounts. In Myanmar, the bank has a representative office. In the Philippines, Krungsri provides consumer financial service in partnership with the Security Bank Corporation or SB Finance.

In Vietnam, Krungsri reached an agreement with Saigon-Hanoi Commercial Joint Stock Bank (SHB), the fifth largest joint-venture bank in Vietnam, last month to purchase and receive the transfer of 100% of the Charter Capital of SHBank Finance Co Ltd (SHB Finance).

The transaction is currently under the regulatory approval of the authorities of Thailand and Vietnam.

Mr Pairote said beside the bank's regional business expansion, Krungsri would support customers, especially small and medium-sized enterprises growing in the region through business matching programme. From the beginning of this year, the bank has supported local clients on business matching of above 300 pairs.


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