CIMB Thai aims to drive return on equity to 10%

The bank aims to raise its return on equity (ROE) dramatically to 7% to 10% within three years, compared with 0.06% now. It also plans to raise other financial ratios on par with Thailand's largest banks by 2013.

The ambitious goal will be met through efficiency gains and synergies from an organisational restructuring and ties with the CIMB Group, he said.

CIMB, Malaysia's second-largest financial services provider, makes about 15% in ROE. The financial group holds 93% in CIMB Thai and also has operations in Singapore and Indonesia.

CIMB Thai reported net profit for 2009 of 1.66 million baht compared with a net loss of 1.98 billion the previous year.

"We need to make at least one billion in net profit per year consecutively over the next three years to achieve our target," said Dr Subhak. "As a result, productivity is a key focus."

For this year, the bank projects loan growth of 10% to 15% - up from a contraction of 6.8% last year - with corporate business up by 10%, small business loans up by 20% and retail loans up by 30%.

CIMB Thai has also set a revenue growth target of 14% to 18% in net interest income and 30% in non-interest income. High-yield products and services will be the bank's key focus in increasing income.