TMB plans to build up assets

Written by changthai11 on Tuesday, October 7th, 2008

BANKING

SOMRUEDI BANCHONGDUANG

TMB Bank aims to double its market share in terms of assets over the next few years, said chief executive Boontuck Wungcharoen.

Under a three-year business plan, TMB aims to lift its deposit market share from 7% this year to 9% next year and then to 14%. Loans to customers are projected to increase from 7% up to 11% of total bank loans.

Mr Boontuck said TMB aimed to also increase its fee-based income from 30% to 35% of total income, with retail banking rising from 30% to 40% of total business.

The bank’s board last week approved the plan, developed with ING Bank which, with 26.4% of company shares, is TMB’s largest shareholder.

“The business target is competitive. With a greater market share of deposits and lending, more is available for network expansion. Our customer-centric strategy will help the bank meet its target,” Mr Boontuck said.

He said the bank had sufficient capital for the next three years of growth. TMB currently has a capital adequacy ratio of 12%, well over the 8.5% minimum set by the Bank of Thailand. This ratio is a rough limit used by bank regulators to govern the assets banks may carry relative to their capital base.

Mr Boontuck said the bank will restructure its deposit portfolio to achieve more savings accounts and current accounts to meet the bank’s lending needs.

He added that TMB is moving forward with plans to sell 20 billion baht worth of non-performing loans and 10 billion worth of non-performing assets by the end of the year.

The sale would help cut TMB’s gross non-performing loans from 14% to 9% of total loans by the end of the year.

TMB yesterday unveiled its new TMB M-Banking service, a programme allowing customers to conduct banking transactions through their mobile phone. Over the next few months, TMB hopes 50,000 to 100,000 of its total deposit customer base of five million will use the service.

Shares in TMB closed yesterday on the Stock Exchange of Thailand at 0.93 baht, down seven satang, in trade worth 63.5 million baht.