Bank of Ayudhya (BAY) aims to aggressively expand commercial business in terms of both deposits and lending this year, thanks to positive economic momentum.
The bank's commercial loan portfolio is expected to rise by 6.2% to 689 billion baht this year, while deposits outstanding from the segment will jump 10.1% to 287 billion, said head of commercial banking Pornsanong Tuchinda.
Commercial loans represent 40% of the total loan portfolio at 1.67 trillion baht. Corporate loans account for 25% of its commercial loan portfolio, while loans for small and medium-sized enterprises represent 15%.
BAY's commercial loans grew 5.6% and deposits rose 2.9% last year.
Even though asset size is still a matter for banking business, BAY will concentrate on a value-added strategy and financial solutions that meet customer demand rather than loan growth this year, he said.
Non-interest income contributed by the commercial business is expected to increased to 40% in the next two years from 30%, said Mr Pornsanong.
The government's flagship Eastern Economic Corridor and the country's economic growth predicted at 3.8% this year should attract foreign direct investment, he said.
Both local large corporations and multinational firms are seeking financial services and facilities from the bank, said Mr Pornsanong.
If the general election goes smoothly, it will build up investor confidence, he said.
"If the election goes without a glitch, a new government is formed and the existing policies are taken up again, investor confidence will be bolstered and the country's economic momentum would gain pace," said Mr Pornsanong.
Metinee Jongsaliswang, head of corporate banking, said BAY aims for 8% wholesale loan growth this year and 19% deposit growth from corporate customers.
Digitisation is a key strategy in driving the segment growth, while the collaboration with BAY's major shareholder, Mitsubishi UFJ Financial Group, would also support clients' business expansion in terms of both inbound and outbound investment.