Bangkok (3 February 2021) – Krungsri (Bank of Ayudhya PCL and its business units), a member of Mitsubishi UFJ Financial Group (MUFG), one of the world’s largest financial groups, announced its new Medium-Term Business Plan (MTBP) 2021 – 2023 with the aspiration - “Be the Preferred Thai Bank Connecting Customers’ Needs across ASEAN.” Centered around five strategic directions of “One Retail” transformation, commercial business enhancement, ecosystem and partnership, ASEAN expansion, and new revenue stream, the new MTBP is to lead the bank toward sustainable growth by leveraging the recent achievements, considering global megatrends, and capitalizing on MUFG’s global networks and expertise combined with Krungsri’s unique strengths.
Krungsri President and Chief Executive Officer Mr. Seiichiro Akita said, “Throughout 2020, as a Domestic Systemically Important Bank (D-SIB), Krungsri has continued to implement various preemptive measures in alleviating financial burdens for customers facing financial distress while continuing to deliver resilient financial performance. Looking back to the second Medium-Term Business Plan (MTBP) covering 2018-2020, we realized our inspiration “To be a Top Tier Financial Group in Thailand” by being recognized as the Domestic Systemically Important Bank (D-SIB) with strong asset quality, digital transformation acceleration, and rapid regional expansion. Considering our key achievements and challenges during the previous MTBPs, including the pandemic and its prolonged impact, as well as both global and local shifts in the market environment and outlook, we set forth the new MTBP covering 2021 – 2023 to go beyond Thailand, with the new aspiration - “Be the Preferred Thai Bank Connecting Customers’ Needs across ASEAN.”
With the new MTBP 2021 – 2023, Krungsri focuses on better meeting customers’ needs more than ever and proliferating sustainable business growth beyond Thailand, supported by five strategic directions, namely 1) operate as ‘One Retail’ by leveraging group-wide data to provide personalized product suites seamlessly integrated into the customer journey and life stage, 2) enhance commercial business by digitizing and accelerating value chains and cross segmentation, 3) develop own ecosystem and form new partnerships to acquire new customers, 4) expand to ASEAN markets by taking Krungsri and its customers beyond Thailand, targeting more income growth from regional investment and support customers in capturing ASEAN opportunities, and 5) create a new revenue stream by leveraging Krungsri’s strength and R&D capability to introduce innovative solutions.
Looking ahead in 2021, given the uncertainties brought about by the new wave of COVID-19 pandemic, our key focus areas are to continue to provide support for customers, maintain stable asset-quality metrics, and manage our operational expenses effectively. Concurrently, we will embark on our new journey following this new MTBP to become the most preferred Thai bank for customers across ASEAN, the top-of-mind partner that helps them with all local and cross-border financial matters throughout the region,” added Mr. Akita added.
In 2021, Krungsri expects to grow the loan business in the range of 3-5%, while the targeted net interest margin (NIM) is at 3.1-3.3%. The non-interest income is expected to maintain flat and the Non-Performing Loans (NPL) Ratio will be lower than 2.7%.
About Krungsri Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s five Domestic Systemically Important Banks (D-SIBs) with 75 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 670 branches (631 Banking Branches and 39 Auto Business Branches) and over 33,431 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.5 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor PCL). Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.
About MUFG (Mitsubishi UFJ Financial Group, Inc.) Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo with over 360 years of history, MUFG is a global network with over 2,700 locations in more than 50 countries. The Group has over 180,000 employees, and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.
