Feb. 11--Bank of Ayudhya (BAY) is shifting its business strategy this year to focus more on corporate and small and medium-sized enterprise (SME) businesses along with its new shareholder Bank of Tokyo-Mitsibishi UFJ (BTMU).
The bank's Krungsri brand will be used to expand its wholesale banking and SME business services, targeting rapid growth markets Cambodia, Laos, and Myanmar.
The bank plans to increase its share of corporate lending to Thai, Japanese, and other multinational companies by utilising the global network and expertise of Mitsubishi UFJ Financial Group (MUFG), BTMU's parent, said BAY CEO Noriaki Goto.
BAY has long been a leading retail business lender, with that segment making up almost half its loan portfolio after GE Capital took over a sizable stake in the local bank shortly after the 1997 financial crisis erupted. BTMU completed a 72% share acquisition of BAY from GE and other shareholders through a tender offer ending in December.
Mr Noriaki said it would maintain its footing in consumer finance and strengthen its non-bank financial services via CFG Services, best known as Srisawad Ngern Tid Lor. The bank aims for 9% lending growth this year.
Separately, Land and Houses Bank projects 2014 loan expansion of 10-20% from total outstanding loans of 104 billion baht last year or 20.5% growth. The bank targets 15% profitability growth after recording net profit of 893 million baht in 2013, said president Sasitorn Pongsathorn.
Shares of BAY closed yesterday on the SET at 32.75 baht, down 50 satang, in trade worth 20.6 million bah
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