The Thai unit of Standard Chartered (STAN.L) has agreed to transfer its retail banking business to TISCO Bank PCL and All-Ways Company, as the UK lender's Chief Executive Bill Winters continues with restructuring to boost earnings.
Standard Chartered announced in November 2015 that it would take a series of restructuring actions to improve returns, including to divest businesses that lack competitive advantage.
Oranuch Aphisaksirikul, Group CEO of TISCO Bank [TISCOB.UL], told a news conference in Bangkok that the firm expects a loan growth of 15 percent in 2017 after transferring Standard Chartered Bank Thai's (SCBT) business.
The net asset value of SCBT's retail banking business is about 5,500 million baht ($152.8 million), TISCO Financial Group said in a note to the Stock Exchange of Thailand. The transfer will take place once approved by the Bank of Thailand and shareholders of TISCO, All-Ways and SCBT, it added.
TISCO Bank PCl and All-Ways are units of TISCO Financial.
Oranuch said the transfer was part of a Standard Chartered "global policy", without giving further details.
"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," Plakorn Wanglee, CEO, Thailand and Representative Offices at Standard Chartered Bank said.
"It is after careful consideration that we have agreed to transfer the Retail Banking business to TISCO."
TISCO said it plans to extend its presence in retail banking both in terms of market position and product coverage.
"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," said Oranuch.
($1 = 36.0000 baht)
(Reporting by Amy Sawitta Lefevre and Wirat Buranakanokthanasan; Editing by Himani Sarkar)