KBank Joining with Lombard Odier to Reemphasize Wealth Management, 780 Billion Baht AUM

Stocks and Financial Services Press Releases Friday February 24, 2017 14:51
Bangkok--24 Feb--KASIKORNBANK

As a step forward in their role as Thailand's top provider of wealth management services, KASIKORNBANK (KBank) is fortifying their cooperation with a world-class private bank partner, Lombard Odier. With this partnership, excellent service towards individual and family wealth management is being offered to enlarge their High Net Worth Individual (HNWI) customer base to 10,300 clients, equal to a 34-percent market share in Thailand, with assets under management (AUM) around 770 billion Baht.

KBank's Private Banking Business Division Head, Mr. Jirawat Supornpaibul, points out that the global HNWI customer market is in continued expansion. As reported by Capgemini's World Wealth Report 2016, In Thailand and Asia, HNWIs have increased 10-11 percent per year over the past 5-6 years, beating the world average of 9 percent a year. This trend is expected to continue in Thailand, though perhaps slower than in some other Asia-Pacific nations.

As for those with assets of 50 million Baht and more in Thailand, the total could be around 30,400 persons in 2017. This segment tends to place more trust in private banking services for the management of their savings and investments – in Thailand and offshore – for both personal and family assets. The reason for this is that they can view and manage all their assets using a single platform, versus their use of many access channels before.

KBank stands ready to offer the most comprehensive, world-class wealth management services in Thailand and collaborates with Switzerland-based, global wealth manager Lombard Odier, in the enhancement of KBank's three primary private banking services:

1. Wealth Planning Service: With a commitment to ensure the sustainability and prosperity of customers' assets from generation to generation, this service is the highlight of KBank's private banking expertise that differentiates KBank from peers. Examples of the comprehensive consultations are included Family continuity planning, Asset holding structures, Inheritance and Wealth transfer and setting up family office and etc. .

2. Investment advisory services within and beyond the capital market, including K-Strategic Global Multi Asset Fund (K-SGM), the first fund in Thailand that diversifies risks in accordance with the management principles that Lombard Odier uses to manage the investment portfolios of their clients worldwide. K-SGM is one of the leading Mutual funds KPB advices to clients, sale volume at 17 billion Baht, along with other funds from KASIKORN ASSET MANAGEMENT and other Asset Management via Open Architecture Platform (OA). Investments outside the capital market, e.g., property management, are made via our global business network having expertise in every investment topic.

3. Special privileges in banking & investment, e.g., business network building, financial concierge services and other privileges, including investment information services via seminars offering domestic and global investment updates, plus network building-related activities, along with other activities held in response to the lifestyle needs of these clients throughout the year.

Mr. Jirawat added that being able to meet every lifestyle need of HNWI customers through a team of over 50 private bankers is the key to KBank's private banking services. Therefore, KBank is confident that their HNWI customers will receive a complete range of private banking services at parity with the international standards, allowing them to manage overall assets efficiently.

In 2016, KBank had 10,000 HNWI customers, accounting for 33 percent market share with 760 billion Baht in AUM, and generated Revenue on Asset of 0.29 percent. For 2017, KBank is targeting an increase in that market share to 34 percent, which would be 10,300 HNWI customers, and 770 billion Baht in AUM. KBank also aims to generate yield on asset of 0.37 percent, and to reach international standard of 0.5 percent by 3 years which would allow KBank to maintain the leadership in this market.

Mr. Vincent Magnenat, Head of Private Banking Asia with Lombard Odier, said that Lombard Odier is primarily supporting KASIKORNBANK by offering its clients access to its leading global wealth solutions based on a unique risk-based approach customized to meet their wealth preservation and planning needs over the very long term. "We are also pleased to be sharing our long experience in serving the holistic wealth planning needs of clients and their families," said Mr. Magnenat.

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