Bangkok--22 Dec--TISCO Financial Group
Standard Chartered Bank (Thai) PCL ("SCBT") has agreed to transfer its Retail Banking business to TISCO Bank PCL ("TISCO Bank") and All-Ways Company Limited , wholly own subsidiaries of TISCO Financial Group PCL ("TISCO"). Under the agreement, SCBT's Retail Banking business, including credit cards, personal loans, business loans, wealth management, mortgage loans, bancassurance and retail deposits will be transferred to TISCO within 2017, subject to regulatory approvals. SCBT and TISCO will work together closely to ensure a smooth transition for affected Retail Banking clients.
Standard Chartered PLC announced in November 2015 that it would be taking a series of simplification and restructuring actions to improve returns, including to divest businesses that have insufficient scale or lack competitive advantages. SCBT nevertheless remains committed to Thailand. Its Corporate and Institutional Banking and Commercial Banking businesses are strong and differentiated and Standard Chartered remains fully committed to serving clients in those segments in Thailand and supporting Thai businesses domestically and as they trade internationally.
TISCO plans to extend its presence in Retail Banking business in terms of both market position and product coverage. The transaction aligns well with TISCO's strategic position and business aspiration. Meanwhile, TISCO will strengthen its Retail Banking business franchise with a substantially expanded customer base, more complete product lines, and increased retail distribution channels. Upon the completion of the transfer of SCBT's Retail Banking business to TISCO, customers will gain access to a wider banking network and broader offering of retail banking services across Thailand. Customers will also benefit from a more complete line of financial services through TISCO's Retail Banking value-added products including loans, savings products, insurance services, investment advisory and capital market services.
Plakorn Wanglee, CEO, Thailand and Representative Offices, Standard Chartered Bank said:
"While our Retail Banking business in Thailand is of high quality, it has insufficient scale and it has become increasingly difficult to achieve the returns that we aspire to. It is after careful consideration that we have agreed to transfer the Retail Banking business to TISCO.
Standard Chartered is the only international bank operating in all ten ASEAN markets, and serving clients that drive investment, trade and the creation of wealth in the region remains at the heart of its strategy. The bank has operated in Thailand since 1894 and having a strong business here remains a core part of its regional strategy. We are committed to helping the country's economy to develop and will continue to invest in our Corporate and Institutional Banking and Commercial Banking businesses here. Our uniquely diversified network complements the government's drive to enhance Thailand's connectivity with the region, and beyond. We can provide the links and right contacts that companies need to pursue and leverage opportunities in other markets.
With full corporate services, we continue to bring efficiency to subsidiaries of multinational corporate and institutions in Thailand."
Oranuch Apisaksirikul, Group CEO of TISCO Bank said:
"Acquiring SCBT's Retail Banking business is in line with TISCO's strategy to expand customer base and broaden our service scope for retail clients. Being a pioneer in the retail lending business in Thailand for more than 47 years, we have been able to sustain growth, by both organic and inorganic ways, through economic cycles and remain a top player in the market. As such, we always welcome the opportunities to fulfill the financial needs of clients. Today we are pleased to enter into an agreement with SCBT, and we both commit our best effort in providing support and service continuity to clients during the transfer period. At the end, they will benefit from the wider range of products and service choices that TISCO Group offers."
The transfer is expected to be completed within 2017, subject to regulatory approvals.