LGT Private Banking, an international private bank owned by the House of Liechtenstein, plans to continue growing business in Thailand over the longer term as it foresees greater opportunities here.
LGT chairman Prince Max von und zu Liechtenstein said based on Bank of Thailand and Securities and Exchange Commission (SEC) regulations, the bank requires minimum assets under management (AUM) of 50 million baht for high net worth clients.
However, for the Thai market he said the minimum AUM of LGT customers is 100 million baht.
LGT selected Thailand as its third regional market in part because of Bank of Thailand and SEC support for Thai offshore investments.
In addition, the family business culture of wealthy Thais and Thailand's growing ageing society are other factors that led LGT to expand to the Thai market.
As Thailand's demographics skew towards an ageing society, there are greater business opportunities in the area of wealth transfers to future generations, said Prince Liechtenstein.
LGT opened its Bangkok office, LGT Securities (Thailand) Ltd, in March 2019 and has been providing offshore investment and wealth management services to high net worth clients across Thailand.
Thailand is the third market in Asia-Pacific for LGT after operating in Hong Kong and Singapore for around 30 years.
LGT has run a private banking business for more than a century and offers comprehensive investment solutions for high net worth clients and families across the world.
The bank offers advisory services, portfolio management, wealth planning and structuring, alternative investments, sustainable investments, securities and foreign exchange trading, financing and lending, and philanthropy and impact investing. Investments and services for Thai clients are diversified, including private equities, mortgage assets and sustainable impact investing.
Thai families are interested in family planning, such as family constitutions and wealth transfers to future generations. Exclusive investment in the strategies of the family-owned bank is another alternative, he said.
LGT has a long-term commitment to Thailand and other markets around the world, said Prince Liechtenstein. After entering the Thai market, LGT expanded operations in Japan and Australia. Asia has high potential growth, especially in the post-pandemic era, he said.
Wealth in Asia has been increasing continually for the past decade, in line with regional economic and infrastructure development as well as a burgeoning middle class, said Prince Liechtenstein.
Each Asian market has different potential in terms of economic growth and the bank's business opportunities. LGT's AUM in Asia totals roughly US$100 billion.
"Wealth in Asia is projected to exceed levels in Europe in two years," he said.
The bank has a positive view of Asian markets, especially following the pandemic. After Asian countries reopened, the regional economy has been recovering healthily, said Prince Liechtenstein.
Western economies are still challenged by high inflation rates and interest rate hikes.