BBL eyeing Malaysia expansion
Bangkok Bank's wholly owned subsidiary in Malaysia has proposed opening up more branches to strongly penetrate the market, from retail to corporate customers.
Bangkok Bank executive vice president Chaiyarit Anuchitworawong said yesterday that Bangkok Bank Bhd had proposed opening four more branches in Malaysia by 2016. The bank currently has five branches in Malaysia.
Bangkok Bank, the largest commercial bank in Thailand, holds 100-per-cent stake in Bangkok Bank Bhd.
He said the Malaysian central bank wants foreign banks to open more branches in order to service retail banking and boost trade finance in Malaysia.
Bangkok Bank Bhd at present provides the full range of financial services in Kuala Lumpur and at its four branches outside the capital, whose main clients are large-sized and medium-sized enterprises.
Bangkok Bank Bhd has performed impressively and having more branches can also strengthen retail-banking services.
It recorded net profit of 8.32 million ringgit (Bt87 million) in the first half of this year, compared with RM4.27 million in the previous year.
Bangkok Bank is a fully licensed bank in Malaysia, and therefore, the financial services are more flexible and can serve the requirements of Thai investors there as well as local customers, he said.
The bank will open a new branch in Indonesia, in Surabaya, in the first quarter of next year.
It currently has a branch in Jakarta.
Bangkok Bank Bhd chief executive officer Robert Loke told Malaysian reporters after the signing ceremony between Bangkok Bank and Wangsa Tegap, a unit of Berjaya Corporation, that the new branches will cost about RM1 million to RM2 million each, depending on location and size.
“We currently have four branches outside Kuala Lumpur, including two in Johor, one in Penang and the latest one in Klang, Selangor. We do not have a branch in East Malaysia, therefore we are also looking at that possibility,” he said.
Asked about Bangkok Bank’s newest investment, Loke said the bank was eagerly waiting for the right moment to invest in a new headquarters, adding the infrastructure and planning of the buildings in Berjaya Central Park was just fine.
He said the bank is looking forward to moving into its new headquarters by the first quarter of 2014.
