(Adds details, Standard Chartered restructuring context)
Dec 22 The Thai unit of Standard Chartered
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
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,
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)