Siam Commercial Bank rules out job cuts
published : 27 Sep 2021 at 14:06
writer: Bloomberg News
Siam Commercial Bank Plc (SCB) will maintain banking staff levels as Thailand’s biggest lender restructures its business, spinning off some units into a new company.
There will be no job losses at the banking operations, Chief Executive Officer Arthid Nanthawithaya said in a Bloomberg Television interview on Monday. SCB will focus on profitability, fintech investments and other growth opportunities in the overhaul, he said.
SCB is ramping up investments in technology and services as traditional lenders across Southeast Asia try to fend off competition from new online finance rivals such as Ant Group Co. The Bangkok-based bank will establish a new company, called SCB X, to be listed on the city’s stock exchange in a move designed to boost flexibility and manage risks.
“The bank is too big to change the culture and to move to be a tech company,” said Mr Arthid. “The size of the bank will be more or less” unchanged, he said.
The stock fell as much as 2.7% on Monday after resuming trade from a public holiday. SCB shares jumped 19% on Sept 23, a day after announcing the restructuring.
An aggressive digital-lending push could further bolster earnings at SCB over the next three to five years, according to Rena Kwok, an analyst at Bloomberg Intelligence.