SCB eyes big corporate banking growth

SCB eyes big corporate banking growth

Siam Commercial Bank (SCB) targets double-digit revenue growth for its corporate banking business next year amid stronger demand for loans and services.

The country's third-largest lender by assets expects minimum 10% growth in revenue contributed by corporate banking and 5-6% corporate loan growth next year, first executive vice-president Pimolpa Suntichok said.

The targets are based on an assumption of economic growth of 3.5% next year.

Corporate demand for fresh funding from both the bank's loan and capital markets has risen over the past two months.

Three large deals have been put off from late this year to the first quarter of 2015. They are the launch of the Electricity Generating Authority of Thailand's infrastructure fund and two bridging loans to finance merger and acquisition deals by WHA Corporation for a controlling stake in Hemaraj Land and Development Plc, and by Thai Union Frozen Products Plc for the biggest stake in Bumble Bee Seafoods.

Large corporate customers generally need financial services rather than loans.

SCB expects its fee-based revenue will surge to half the total to be generated from wholesale banking next year from 47-48% now.

Mrs Pimolpa said the government's infrastructure plan would stimulate private investment.

"Local large companies are expected to manage to ride through global risks given their solid financial position and business adjustment ability, but it needs more effort in cost management," she said.

SCB expects to see flat growth in revenue from wholesale banking this year after corporate customers delayed investment due to political turmoil and economic uncertainty. However, it expects growth of corporate loans of 4-5% and of profit from wholesale banking of 1-2% this year.

SCB shares closed on the SET yesterday at 183 baht, down 1.50 baht, in trade worth 486 million baht.

Do you like the content of this article?
COMMENT