Bangkok Bank (BBL) intends for its new Myanmar branch to be among its top five lenders outside Thailand by 2020, in line with rapid growth in the neighbouring country.
Thailand's second-largest commercial lender by assets upgraded its representative office in Yangon, which has been operating for 20 years, to a branch in June after it won a foreign branch licence from the Myanmar government. It was the only Thai bank to be granted a licence.
"Myanmar has high potential, with rapid GDP growth, rich land and natural resources, and a large population officially estimated at 60 million," BBL president Chartsiri Sophonpanich said, adding that the Yangon branch's loan portfolio remained minimal.
Chartsiri: Several pluses in Myanmar
The International Monetary Fund in September forecast Myanmar's economy would grow by 8.5% this year and at a similar pace in 2016.
BBL now has branches in nine of the 10 Asean members, the only exception being Brunei.
The bank has 30 foreign branches.
The Hong Kong branch, its oldest offshore outlet, has the biggest loan portfolio internationally, followed by those in Indonesia, Singapore, China and Malaysia.
Foreign branch lending accounted for 18% of BBL's 1.81 trillion baht in outstanding loans as of Sept 30 as well as contributed 18-20% of revenue.
Mr Chartsiri said the international branches' revenue portion should remain unchanged for the next three years.
The Myanmar branch now serves only joint ventures, Thai customers and investors of other foreign nationalities.
It is prohibited from providing banking services to Myanmar citizens and locally owned businesses.
Myanmar remains a cash-based society due to low confidence in the banking sector, Mr Chartsiri said.
The bank has focused on trade solutions for exporters, importers and capital-intensive industries, he added.
BBL shares closed yesterday on the Stock Exchange of Thailand at 168 baht, up 50 satang, in trade worth 435 million baht.