Bangkok Bank's fifth branch opening in China extends its coverage to all major economic zones of the world's second-largest economy, says a high-ranking executive.
BBL, Thailand's largest lender by assets, opened its newest branch in Chongqing in southwestern China.
Even though BBL's existing branches, operating under the Bangkok Bank (China) unit, are located in three of the country's four major economic zones — Beijing, Shanghai and Chongqing — its branches in Shanghai also cover business activities in the Tianjin economic area, executive chairman Kosit Panpiemras said.
Customers of the Chinese branches are fairly evenly distributed between Thais, Chinese and other nationalities, while the structure is similar to that at the bank's other foreign branches.
BBL now has 28 branches and representative offices in 13 countries and territories including Hong Kong, Indonesia, the Philippines, Singapore, Taiwan, Vietnam, the US and Britain.
Mr Kosit said the bank's international loan portfolio ratio is expected to remain unchanged at 17-18% of loans outstanding, though the new branch in China could contribute to higher growth.
Suwatchai Songwanich, the Chinese unit's chief executive, said the number of Chinese customers has risen significantly since it received a local banking licence in December 2009. Chinese clients represent 30-35% of its customers, up from 10%.
The Chongqing branch's clients mostly work in the automotive and electronic industries, while the branch plans to expand into the key agricultural sector.
The Chinese unit has targeted double-digit lending growth this year, propelled by China's economic expansion forecast at 7.5%, while the Chongqing branch is expected to continue its strong performance after growing 13% last year.
The Chinese unit recorded lower-than-expected single-digit loan growth last year because of China's economic slowdown, but it managed to control non-performing loans at a satisfactory level.
BBL plans to focus its foreign business on Cambodia, Laos, Myanmar and Vietnam over the next two years in preparation for the Asean Economic Community, which will be launched in late 2015.
It is set to reopen its Cambodian branch after it was shut down for several years, while it plans to open a second outlet in Laos.
The bank has two branches in Vietnam, located in Hanoi and Ho Chi Minh City, and a representative office in Myanmar.
BBL shares closed Friday on the SET at 184.50 baht, down one baht, in heavy trade worth 2.22 billion baht.