CIMB Thai unveils business strategy with profitability built on core strengths
CIMB Thai Bank Plc. (“CIMB Thai” or “the Bank”) has come up with its 4-year business strategy competing in the areas of its expertise and strengths to become a leading focused ASEAN bank with digital drive for differentiation and leadership in treasury and consumer banking business.
Sutee Losoponkul, CIMB Thai’s Acting President and CEO, revealed that, to achieve the Bank’s vision with the goal to be “the leading focused ASEAN bank” that delivers sustainable financial results, the Bank has drawn up its 4-year business strategy consistent with that of CIMB Group, with the roadmap toward being “a digital-led bank with ASEAN reach” based on digitalized differentiation of products and services. The Bank is well positioned to fully play in the fields where it has expertise and strengths in conjunction with enhancement of cost efficiency. Such strategy and plan are set to be submitted for its Board of Directors’ consideration soon.
Sutee further said that CIMB Thai’s treasury business has today proved to be the Bank’s core strength being the market leader in both product origination and distribution. The Bank’s treasury franchise is also the market maker with introduction of THOR as a reference interest rate and for secondary bonds trading. Its most recent significant move is the boost of digital scalability through its CIMB Thai Digital Banking application where customers can subscribe for primary bonds. Additional services soon to be added on the application are offering of secondary bonds, FX and custodian services.
CIMB Thai’s consumer banking has been outstanding in the market with robust growth in car and motorcycle hire-purchase in the past year and being a leader in used car auto financing. The portfolio recorded a growth of 25%, the fastest in the industry, and ranked the 2nd largest in market share. Such momentum tends to continue further on. The Bank’s housing loans and refinancing as well as personal loans have increasingly been popular being among the first choices of source of funds for consumers.
The Bank’s digital banking service has expanded rapidly. The number of active users of its application has increased from 43% to 80% of cumulative onboarding users who use services related to money transfer, mutual funds, loans and bill payment on the application. Its prominent strength is in service differentiation through partnership with its allies in lending of loans on the application, which shifts from traditional lending practice through branches. The next development step is the boost of data capabilities and advanced analytics for business expansion.
In wholesale banking, the Bank has stayed firm as an ASEAN bank to respond to demand of the CLMV with ASEAN platform developed to deliver product and service excellence. With its regional expertise, the Bank has brought its customers to grow cross-border businesses and from which targeted to make the largest contribution to CIMB Group’s total revenues.
“We will remain steadfast in leveraging our strengths in treasury, consumer banking, wealth management and wholesale banking businesses to move forward and become “a digital-led bank with ASEAN reach.” To attain this goal, CIMB Thai will be home to the best talents and be the most respected mid-tier bank looking forward,” said Mr. Sutee.
In the first 9 months of 2020, CIMB Thai posted a net profit of THB 1,467.5 million, a THB 464.5 million or 46.3% year-on-year growth as fueled by the increase in operating income and the better control on costs and expenses. Amid the prevailing economic uncertainties, both front and back office staff of the Bank will keep abreast of the situation and continuously follow up and assist the customers so that their businesses can return to normalcy. The Bank’s financial status remained solid with BIS ratio of almost 20%, nearly doubling that of the regulatory criteria. The better operating results have partly attributable to the outcome of the Bank’s Fast Forward scheme under which business transformation has been undertaken in various areas and has thus generated fruitful performances at present.
