Siam Commercial Bank plans to boost its consumer-banking business next year to keep ahead of the competition in the retail-finance market.

Executive vice president Pradeep Roy said late last week that SCB would concentrate on credit-card loans, mortgages, bancassurance and auto hire-purchase.

SCB aims to double its personal loans. Outstanding loans are low at Bt5 billion. The Speedy Loan scheme was launched some years ago but has yet to achieve a sizeable portfolio.

SCB is targeting a credit-card base of 2 million by the end of next year up from this year's expected 1.6 million. The country's third-largest bank is the card market leader in terms of base.

It will offer new mortgages worth Bt40 billion next year, an ambitious goal which if successful will increase its market share to 31 per cent from 30 per cent now. It is already the market leader.

Pradeep said the bank's retail loan products were likely to see growth greater than the market rate for this year, with spending per credit card per month of Bt8,000-Bt9,200, up 39-41 per cent year on year compared with market growth of 20-21 per cent.

However, the spending growth rate in the overall credit-card market is expected to fall slightly next year to 19-20 per cent, so that SCB's will be around 30 per cent compared with this year, he said.

The bank's automobile loans will have more potential to grow next year under its new financial subsidiary SCB Leasing, in which it holds 75 per cent, and bancassurance should be up too as SCB has more than 50 per cent of the market.

"With the bank's strength in fundamental bases, comprising people, IT systems, outlets and management, it should be able to achieve its goal and maintain its top position in retail banking, though the market competition is expected to be tougher next year," Pradeep said.

The bank has yet to finalise its retail plan for next year but expects to do so within a fortnight. Retail-loan growth rate would normally be 5-10 per cent higher than total loan growth rate.

Bank president Jada Wattanasiritham said SCB's overall lending growth for next year would exceed 10 per cent.

The cooperation between Bank of Ayudhya and GE Money will intensify competition, she said, but by the same token stimulate business. Jada believes financial institutions, SCB among them, are prepared for tougher competition.

Retail banking generates more than 40 per cent of SCB's yearly revenue. It will increase its branches nationwide from 750 to 800 by the end of the year and add another 100 or so next year.

Somruedi Banchongduang

The Nation