Maybank Kim Eng, Number One Broker heading to be a leader among ASEAN Financial Institutions
Date: 12 February 2013
Maybank Kim Eng Securities (Thailand), the number one broker for many years is heading into its 12th year as champion broker and is moving forward in delivering a wide range of investment services under two main business sectors; securities and investment banking. Our objective is to increase our customer base and maintain the leading market share, as well as to becoming an ASEAN financial powerhouse by 2015.
Intercontinental Hotel – Mr. Montree Sornpaisarn. CEO of Maybank Kim Eng Securities (Thailand) Plc. or MBKET, disclosed the Maybank Group’s goal to become a leader in ASEAN by 2015. The company also plans to develop the two main divisions of securities and investment banking. Last year, the company revenue was Bt3.235bn with a Bt738mn profit, which was a 12.87% increase. The majority of income comes from securities business at 90%, interest income 5%, and investment banking 3%. Currently, Maybank Kim Eng Securities (Thailand) has the largest market share as of the end of 2012 at 11.86% and in January 2013, that moved up to 12.5% with weighted average market share from local investors 17%, local institutions 4-4.5%, and foreign institutions 2-2.5%. Presently, we have 120,000 customer accounts with half being presently active. The company expects to expand this investor base to 140,000 accounts this year.
Maybank Kim Eng Securities (Thailand) is supported by Maybank, a world-class bank, as the largest shareholder of the company. This support helps Maybank Kim Eng be a strong brokerage house, as well as, strength in finance and services. The company has a great risk management system, which has resulted in an AA credit rating, similarly to the top Thai banks. Our market share of local institution is ranked as one of the top 10 highest market share among the local institution firms. Our foreign institutional business is increasing after the merger with Maybank.
The Investment Banking division, providing financial advisory and listing services had a great start at the beginning of the year. This division is providing the Initial Public Offering (IPO) for 5 -7 companies and Infrastructure Funds for 2-3 companies, Property Funds or Real Estate Investment Trust (REIT) for 2-3 companies, with total capital of Bt10.0bn. Moreover, the Maybank Group supports Global wholesale Banking, which is ready to release lending to assist Thai firms wishing to invest abroad. Last year, the Maybank Group lent the Thai Beverage Group 500mn Singapore dollars (SGD) (Bt12.5bn).
Mrs. Boonporn Boriboonsongsilp, CEO - Retail Business of Maybank Kim Eng Securities (Thailand) Plc. stated that in securities in Thailand, the company goal is to expand the retail customer base and to increase the market share from 11.86% to 12-13% in 2013. The goal to increase market share among online transactions is up to 25% and expanding the
existing customer base by approximately 20,000 accounts. Furthermore, the company is planning on opening 3-4 branches new this year in Bangkok and upcountry. Some strategies are to provide continuous knowledge and understanding for investors throughout the year, holding special seminars, providing information relating to the market status and fundamental stock analysis from the Research team, and other promotional activities used to equip investors with all necessary information and knowledge a guide their investing and to provide ongoing customer support throughout the year. With support from Maybank, the company is able to provide larger lending margins up to Bt12.0bn.
In derivatives, the company has released Derivative Warrants steadily and aims to release not less than 100 series. In addition, we are preparing to release derivatives on savings bonds to provide more options for investors. In domestic derivatives, the company sees growth for the customer base, especially in the risk management area when there is a market downtrend. Moreover, the company plans to cooperate with Maybank Group, a system development and operation, to provide services in foreign derivatives in the second half of 2013.
To provide better customer services, the company is developing and modernising technology to be faster and more stabile, while continuing to focus on the development of software for trading derivatives and to communicate with all types of devices used by clients. We are also focusing on communication activities via social media.
In product and services, the company has expanded products and services to meet customer need. The company is in the process of expanding a Private Fund sector to support Private Wealth business in investment financial advisory services. Furthermore, we plan to expand investments in debt securities and extension services within agricultural commodity futures trading in the country this year. Our Offshore trading, which was launched in July last year, is setting a good trend and we aim to provide more information on these services to investors.
Besides focusing on providing customer services; this year the company will expand the institutional customer base, as well. The Maybank Group and the company aim to become a regional-centric organization and the Maybank Group is providing human resources and analysis to support this endeavour, since the Maybank Group has more experience in dealing and providing services to institutional customers. This process relates to the Maybank Group goal of becoming a leader in providing a full range of financial services.
“As time passes by, the company has earned the trust of retail and institutional customers. From now, the company is determined to strengthen all divisions and investment products to continue to give information and to build confidence within the investment community in order to open more opportunities for new investments. The Maybank Group as an ASEAN power house will support and promote the company to become a leader in the ASEAN market,” Boonporn said.