UOB Thai targets 20% business surge due to low base

The lender aims to rev up operations behind lackluster Thailand economy as its parent company’s overseas operations expected to benefit from the region's booming economic growth.

United Overseas Bank (Thai) has set an aggressive goal to expand its business this year by 18-20%, after a long lull dominated by the sluggish economy, according to executive vice-president Tay Han Chong.

The bank also aims for 20% growth for small and medium-sized businesses and consumer finance. The ambitious goal is partly due to the bank's low base, with a total loan portfolio of 157.88 billion baht ($5.21 billion) at the end of last year, and the improving overall economy, Mr Tay said.

The Thai unit's growth target is higher than that of the parent UOB Group, which is 15-16%.

As a regional bank, its overseas financial group expected to benefit from the region's promising economic growth through its network in Singapore, Malaysia, Indonesia, Thailand, China and Hong Kong.

"For the Thailand branch, our business has been quiet for the past few years due mainly to the economic slowdown resulting from the US financial crisis in 2008-09. From now on, the bank will be more aggressive with its operation in Thailand as the country's economy is improving," he said.

Mr Tay said the bank forecast the Thai economy would grow by 4-5% this year, mainly driven by domestic consumption and investment, as well as exports, mainly to Asean countries.

View the full story in Bangkok Post.