Standard Chartered to exit retail banking in Thailand
UK lender Standard Chartered has announced that, in 2017, it intends to transfer its Thai retail banking business to Tisco Financial Group Pcl, saying that it lacked the scale to generate adequate returns. It will, however, continue to operate corporate, institutional and commercial banking businesses in Thailand.
Plakorn Wanglee (pictured), Standard Chartered CEO, said in a press release that the small size of the retail operation made it "increasingly difficult to achieve the returns that we aspire to".
Oranuch Aphisaksirikul, Group CEO of Tisco Bank, a unit of Tisco Financial, speaking at a news conference in Bangkok, said that the firm expects a loan growth of 15% in 2017, after transferring Standard Chartered Bank Thai's business. Tisco Bank will take over operations, including personal lending, mortgages and deposits. Another unit of Tisco Financial, All-Ways Co., will take over the credit-card business.
According to a stock exchange filing by Tisco, the net asset value is around $153 million. A price for the deal, which is still subject to approvals, has not yet been disclosed.