Citibank Thailand has set aggressive growth targets for its wealth management business as the Bank of Thailand's further relaxation to facilitate offshore portfolio investment is believed to be a boon to the business.
The US-based bank aims for a 40% increase in Citigold customers, whose minimum assets under management (AUM) is 5 million baht this year. It wants to triple its wealth client base by 2020, said consumer business manager Vira-anong Phutrakul.
The central bank's looser measures for overseas investment and the bank's business strategies are anticipated to help Citibank achieve its goals.
Mrs Vira-anong would not reveal the number of Citigold customers, but said the bank has 1 million credit cardholders, 300,000 personal loan borrowers and 30,000 depositors.
The central bank recently approved raising the ceiling overseas indirect investment under the quota set by the Securities and Exchange Commission to US$100 billion (2.5 trillion baht) from $75 billion to serve demand for local investors who want to allocate their investment portfolio abroad.
The quota has been granted to financial intermediaries including stock brokers, banks and investment management companies.
The central bank's eased capital outflow measure will allow banks to further expand their wealth management businesses, particularly in the area of offshore investment. With Citibank's current platform, expertise and global networks, it is ready to support high net-worth customers, she said.
On average, foreign investment funds and foreign portfolio investment represent more than 50% of a client's investment portfolio. That ratio is expected increase, driven by the central bank's loosened regulations.
At the same time, the investment portion has increased to 70% of total assets, while the remainder is deposits. In previous years, investment portfolio totalled 30%.
"Around 30-40% of total new investment each month from Citigold customers is put into foreign funds. As well, the growing wealth of Thai people is the key factor for the bank's business growth," said Mrs Vira-anong.
Citibank manages total investment of $218 billion across Asia-Pacific, while Thailand is one of the biggest centres for high-potential investors.
Mrs Vira-anong said the bank has also been improving the quality and expertise of its investment advisory service.
