Land and Houses Bank (LH Bank) plans to open several branches to increase its customer base, says president Sasitorn Pongsathorn.
Sasitorn: Micro-units much cheaper
The bank plans to open 29 more branches in the second half of this year from the existing 77 nationwide, increasing to 112 branches in next year's first quarter.
With the ambitious plan, its branch ratio in Bangkok and upcountry will increase to 50:50 next year from 55:45 now.
The new outlets will mainly be micro-branches in line with the central bank's new regulation and the LH Bank's business strategy. Micro-branches also save on investment and operational costs, as each needs only one-third the investment of a full branch's 8-10 million baht, she said.
"Financial services at micro-branches are the same as at full branches, but they offer the bank more flexibility on marketing thanks to lower costs," added Ms Sasitorn.
The company launched LH Bank Privilege in cooperation with business partners Home Product Center, Grand Center Point Terminal 21 Hotel and Centre Point Hotel Ploenchit. The service provides investment advice to customers and offers privileges to bank customers via its partners' services.
The bank will also offer financial services to wealthy customers with minimum assets under management of 5 million baht.
The country's largest real estate developer Land and Houses (LH) owns the biggest stake in LH Bank at 34.39%.
Quality Houses (QH), also a developer under the LH Group, is the second-largest shareholder with a 21.6% stake.
The bank's has 100,000 deposit customers now, 30,000 of which are expected to use the new financial service.
The average deposit account holds 1 million baht, higher than the average amount in the country's banking system.
LH Bank's outstanding deposits amount to 100 billion baht.
Shares of LHBANK closed yesterday on the SET at 1.39 baht, up eight satang, in trade worth 141 million baht.
About the author
- Writer: Somruedi Banchongduang
Position: Business Reporter