Bangkok (19 September 2019) – Krungsri (Bank of Ayudhya PCL) unveiled its commercial banking business strategy in the second half of 2019 with leveraging synergies between Krungsri’s local strength and Mitsubishi UFJ Financial Group (MUFG)’s global network to provide superior financial services that serve the different needs of corporate customers and small and medium sized enterprises (SMEs). In addition, Krungsri aims to become a trusted banking partner, while building growth of non interest income and fee income through solutions that help enhance business efficiency.

Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said, “In the first half of 2019, Krungsri’s commercial banking group posted strong performance that achieved growth target, while non-interest income rose higher than target. Considering the domestic situation, the global trade and economic uncertainty, our business customers have been highly adaptive to changes in business environments. Krungsri’s commercial banking group emphasizes on adjusting balanced portfolio to enhance quality management and strenghthen the overall operations. With ongoing volatility of economic conditions, Krungsri is strongly committed to supporting business customers consistently and sustainably. We continue to focus on the remarkable strength of synergies between Krungsri’s local expertise and MUFG’s global network, enabling us to provide differentiated financial services and introduce new risk management products that help mitigate currency risk and interest rate risk. We also provide advisory services, knowledge sharing and networking activities through Krungsri Business Empowerment, designed to help our corporate and SME customers extend business potential and create strength in the long run. In addition, we also develop several digital platforms to facilitate our customers with more convenience and cheaper costs and prepare them to enter the digital economy.”

Dr. Metinee Jongsaliswang, Krungsri Head of Corporate Banking Group, said, “Krungsri gives priority to customer-centricity strategy and upgrades our services to become a thought partner, as well as provides comprehensive financial solutions via digital platforms to serve every aspect of customers’ needs. The strategies helped performance of Krungri’s corporate banking to exceed target in the first half, with total revenue increasing 6% from the same period a year earlier, supported by an increase in fee incomes, such as derivative fees, investment banking fees, and those from domestic trade transaction. The growth helped increase the proportion of non-interest income to 25% of total revenue from 18% a year earlier. Through the collaboration with MUFG, Krungsri has enhanced capabilities to facilitate offshore business expansion, business matching and joint venture for corporate customers, which resulted in the strong growth of Krungsri’s corporate banking.”

Mr. Sayam Prasitsirigul, Krungsri Head of SME Banking Group, said, “Krungsri’s SME banking group posted strong growth that exceeded our own target. In the first half of 2019, loans for medium-sized SMEs and small-sized SMEs grew 8% from the end of 2018, mainly due to outstanding performance of supply chain business, while deposits also posted robust growth of 8%. Another strong area was fee income from trade finance, which increased 8% from the same period a year earlier, as a result of synergies from the collabolation between Krungsri and MUFG. Fee income from cash management increased 26% from a year earlier. On the asset quality, Krungsri SME has managed assets efficiently, with non-performing loan (NPL) for the SME segment at 3.4% in the first half of 2019, decreased from 3.8% at the end of 2018 and lower than the industry average.”