Bangkok--21 Mar--Standard Chartered Bank (Thai)
- In line with Standard Chartered Group’s 10th consecutive year of record profit and income
- Credit card’ spending reached record high and portfolio programmes yielded the best-ever period end balance
- As the only international bank with footprints in all 10 ASEAN countries, see benefits from AEC for the increase in trade and investment in Asia
Ms. Lyn Kok, Standard Chartered Bank (Thai)’s President and Chief Executive Officer announced that 2012 was another record year, with the highest profit ever. Standard Chartered Bank (Thai) and its subsidiaries’ consolidated profit was THB 3,254 million, 9% increase from that of 2011 (THB 2,981 million), with upward trends in both net interest income and non-interest income. Both business engines continued to remain strong. Consumer Banking introduced new products and services while Wholesale Banking continued to successfully support Thai clients in raising funds and expanding overseas, thereby making the client/customer revenue increase.
“Despite the headwinds from the global financial crisis and local economic arena, Standard Chartered Bank (Thai) made 2012 another milestone year, with a record net profit after taxes of THB 3,254 million, a 9% growth year-on-year. Recently announcing its 10th consecutive year of growth, the Standard Chartered Group had an 8% rise in income to USD 19 billion, with profit up 1% to USD 6.9 billion. Twenty-five markets delivered double-digit growth and 26 markets delivered income of over USD 100 million including Thailand. The Group’s balance sheet is in excellent shape. We are highly liquid, primarily deposit funded and strongly capitalised,” said Ms. Kok.
Standard Chartered Bank (Thai), meanwhile, managed to maintain the AAA (tha) rating for its National Long-term Credit Rating from the previous year, being the best rated commercial bank in Thailand with a stable outlook ranked by Fitch Ratings. And recently, the Bank has been upgraded in the long-term foreign-currency issuer default rating from BBB+ to A-. The Bank is considered by Fitch to be strategically important subsidiary to its parent company.
Consumer Banking
“A customer-focus model and the creative banking solutions in Consumer Banking remain our core strategies to help the Bank deepen relationships and build a solid platform for sustainable growth,” said Ms. Kok.
This focus helped the Bank move up its Net Promoter Score (the customer loyalty metric) to 76, which was perceived as the highest rating in the banking sector. To offer greater convenience to customers, in 2012 the Bank had 24 outlets renovated and introduced more accurate and speedy services at branches e.g. the intelligence queue system, the eight-minute pledge service guarantee, account opening with a smart ID card. Responding to the age of digitisation and the increasing use of smart phones and tablet PCs, the Bank has enhanced its Online Banking, Mobile Banking, and SMS Banking platforms to better serve customers.
The credit card business of Standard Chartered Bank (Thai) was boosted by the industry’s best ‘15% Cashback’, the campaign that pays back the credit card holders for their spending at every restaurant and hotel all around the world. In 2012, card spending was at a record high and the portfolio programme yielded the best-ever period end balance. ‘Simplicity’ the programme that makes it easy for SMEs to bank with Standard Chartered was another success, with packages that cover all aspects of SME business needs including: loan, cash management, and trade facilities. All of these together made Consumer Banking end the year well, and with good momentum for 2013.
Wholesale Banking
Wholesale Banking continues to support corporate clients in fulfilling their cross-border ambitions. This is increasingly important as the ASEAN Economic Community or AEC integration appears on the horizon, which will enable more seamless trade flows across ASEAN.
“Our Transaction Banking Services remain a strategic solution provider in cross-border cash management solutions. We closed more big deals with more clients,” said Ms. Kok. Some highlights for Wholesale Banking include the agreement on cash management mandate with PTT Polymer Marketing (PTTPM), which will enable the Bank to provide cash management account services for PTTPM’s representative offices in Indonesia and Dubai; and the overseas fundraising for PTT Global Chemical and Kasikorn Bank. Also, the bond activities helped Thai Beverage finance the largest Thai overseas investment ever in buying Fraser and Neave (F&N). This has lifted the Bank to the number 3 spot in the league table for Bonds in Thailand, and also won the Best Debt House in Thailand and Best Deal by The Asset Asian Awards.
Looking Ahead
Having had a presence in the market for 119 years, the core strategy at Standard Chartered remains unchanged. The Bank continuously plays on its distinctive strengths of creative innovation and cross-border connectivity.
ASEAN will still be the key theme to look ahead to as the world is building new trade corridors outside Europe and the US so as to become less dependent on the economies in the West.
Recently, the Central Bank of Myanmar has granted Standard Chartered Bank a licence to re-open its representative office in Yangon, making Standard Chartered the only major international bank operating in all 10 ASEAN countries. As a result, the Bank here in Thailand will be leveraging its strategic position to cater to the needs of Thai and Thailand-based clients looking to conduct business in Myanmar, where great opportunities lie alongside other cross-border ambitions.
In the last few years, advanced technology and digitisation have had a profound impact on customer behaviour. The pace of change is also accelerating, with mobile phones widely predicted to become the preferred consumer payment device within just a few years. As a bank, Standard Chartered sees digitisation as a great opportunity to reconnect with the new generation of customers. In 2013, the Bank will certainly continue to invest time in understanding the digital agenda of customers and in developing a differentiated digital proposition, as the Bank has a chance to recast itself in a new role as digital partner to individual customers, SMEs, and corporations.
“Looking forward, I think 2013 will be equally exciting. Standard Chartered has a clear strategy. We’re investing in our businesses and employing more people. There’s no doubt that our markets will continue to change dramatically. Technology will change the way banks work and compete. Regulation will force further change in business models. Yet by sticking to our strategy, by staying true to our culture, by innovating and adapting, and continue to be ‘Here for good’. I am confident that we can continue to be successful. We start 2013 in great shape. Our businesses have very good momentum. Our balance sheet has never been stronger and we’re superbly placed to seize the opportunities.” concluded Ms. Kok.