Siam Commercial Bank (SCB) plans to increase its fee-based revenue from corporate banking to half the total by year-end after closing several deals.
Senior executive vice-president Arthid Nanthawithaya yesterday said the growth of fee-based revenue this year will likely surpass that of interest revenue, which is expected to expand by a single-digit rate.
For the third quarter, SCB recorded net fee revenue and insurance premiums of 8.9 billion baht, with 1.69 billion or 19% generated from wholesale banking.
It expects revenue growth of 20% for wholesale banking this year.
The total loan portfolio of its corporate banking segment in the third quarter was 602 billion baht, rising 1.3% from the end of last year and 2.7% year-on-year.
With its great effort to expand fee revenue rather than interest revenue, SCB has succeeded in pushing the fee-based revenue ratio of the segment up to nearly 50% compared with 35% in the last five years.
Mr Arthid said SCB has concluded several deals in investment banking, capital markets, hedging products and cash management, making it confident that it will achieve its fee target.
The deals are projected to be worth 300 billion baht after it helped CP All Plc's acquisition of Siam Makro Plc.
SCB expects to complete a deal for True Corporation's infrastructure fund.
As financial adviser and underwriter, it has prepared the fund's unit offering and awaits approval from the Securities and Exchange Commission.
Mr Arthid said deals for infrastructure funds, real estate investment trusts and initial public offerings are expected to have positive momentum next year.
Corporate loan demand is expected to be stronger next year, in accordance with the improving economy.
The SCB Economic Intelligence Center predicts Thai economic growth will rebound to 4.5% in 2014 from 3.4% this year.