BANGKOK: Thailand's fifth-largest lender by assets, Bank of Ayudhya (BAY), is planning to grow its presence in Southeast Asia and generate 10 per cent of profits from overseas by 2023, a senior executive said on Monday (Sep 13).
"We will use our strengths to build new business, diversify and build resilience," chief strategy officer, Pairote Cheunkrut told reporters.
Currently, about four per cent of its profits come from outside of Thailand.
The announcement comes as Thai lenders and businesses further expand abroad.
In August, BAY announced it would acquire SHB Finance in Vietnam for US$115 million.
In 2019, rival lender Bangkok Bank acquired Indonesia's PT Bank Permata for about US$2.7 billion.
"We will start with the retail markets, which is our strength and then advance to commercial segments if there are opportunities," Pairote said.
This was the model BAY used for Cambodia, its largest market outside of Thailand, when it acquired micro-lending institution HKL in 2016, he said.
It received approval last year to become a commercial bank and was renamed Hattha Bank.
BAY's advantage comes from its global network and products of its parent firm, Japan's Mitsubishi UFJ Financial Group, Pairote said.
The Japanese financial group holds 76.9 per cent stake in BAY.
"Our end game is to have footprint in all ASEAN markets," Pairote said, referring to the 10 countries of the Southeast Asia bloc.
It currently has presence in five countries, including the Philippines, Myanmar and Laos.