Like other commercial banks, Standard Chartered Bank (Thai) has seen the healthy growth of the thai economy as an opportunity to boost consumer loans under strict risk management controls, said president lyn kok.
StanChart pays close attention to risk management, says Ms Kok. SOMCHAI POOMLARD
The bank plans to recruit staff to support its business growth goal this year.
StanChart projects the 2013 Thai gross domestic product will grow 4%. It recruited 500 new sales staff for its consumer finance business last year.
"Healthy growth in consumer finance banking is in line with strong domestic consumption. But like all financial institutions, we pay close attention to risk management and try to be responsible with our consumer loans," she said.
Although household debts are rising, Thailand's savings ratio is quite strong at 31% of GDP. Capability for debt payment of the bank's individual customers remains positive.
Last year the bank's unsecured loans sat at 29.31 billion baht, up 14% from a year earlier, and higher than its secured loan portfolio. The bank's total outstanding debts were 205.72 billion baht at the end of 2012, of which 50% were consumer finance.
A focus on customers and creative banking solutions for consumer finance are supposed to strengthen clients' relationships with the bank and build a solid platform for long-term growth.
StanChart showed satisfactory growth in consumer banking profits last year, attributing it to creative banking and marketing aimed at responding to customers' requirements. The bank offers credit cards and personal loans, and its credit card spending booked a record high last year, she said.
The bank's net profit recorded a high of 3.25 billion baht in 2012, up 9% year-on-year, supported by net income growth of 11.97 billion or 6%. It expects further profit growth this year, beating the country's GDP growth.
About the author
- Writer: Somruedi Banchongduang
Position: Business Reporter