Given the estimated impact of the new provisioning requirements, the brokerage has revised this year's earnings forecast for SCB about 11 per cent downwards.

However, it maintains its forecasts on operating-profit growth for both this year and 2007-08.

The bank plans to boost its momentum on new growth drivers next year, led by small and medium-sized enterprises and auto leasing/hire-purchase, both of which should increase at rates in the high double digits.

This should drive the bank's overall portfolio growth to 13 per cent next year, compared with 11 per cent this year.

With a comprehensive platform and better cost-efficiency, SCB has an aggressive growth strategy based on profitability per account, in order to gain an increased share of its customers' wallets.

This should raise its growth beyond macro growth of about 8 per cent next year.

The bank is expected to use its comprehensive universal-banking platform and superior cost-efficiency with a profitability/account focus to help increase its market share. This includes a low-price strategy.

The low-price strategy on the new growth drivers does not necessarily mean low profitability for the bank.

Selling new products and services at lower prices while bundling them together with other higher-profit products, such as insurance and retail banking, should provide acceptable risk-adjusted profitability on an individual-account basis.

Despite having the highest contribution from fee income, fee growth should remain strong, with the bank benefiting from its strong investment-banking subsidiary.