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Published on July 9, 2007

A bank source said Siam Commercial's corporate-loan division had been split in two.

One part is now responsible for infrastructure and energy and the other for manufacturing and services.

"This is in preparation for the country's economic recovery, which is expected to take place next year. Besides, it presents a clearer picture to customers and allows the bank to take better care of them," the source added.

Restructuring the corporate-loan division lets the bank respond faster if borrowers start to experience problems, too.

The country's third largest bank will "expand distribution channels" to provide better services for clients. It will guarantee sector expertise and advice.

Executive vice president Sarunthorn Chutima said the bank would maintain corporate-loan growth of 10 per cent, or Bt20 billion, this year.

Although the bank's lending in the first half of the year was below target, it predicts a bounce back as the economy improves after a general election.

Meanwhile, Bangkok Bank executive vice president Piya Sosothikul said it would lend aggressively in "niche markets", particularly mortgages for foreigners in Phuket, Samui, Hua Hin and Pattaya.

Bangkok Bank will have the largest slice of the mortgage market in Phuket. Sales of houses and apartments are expected to grow 20-30 per cent a year over the next few years. This will boost the bank's real-estate portfolio to 6-7 per cent of total loans. It is currently about 5 per cent. Mortgages cannot exceed 8 per cent of total loans.

It will lend to developers, too. "Developers in Phuket are either joint ventures between locals and foreign businessmen or local developers, while home-buyers are premium foreign customers who want to purchase vacation homes," Piya said. 

Somruedi Banchongduang

The Nation