Major local banks are seeking joint venture partnerships for their asset management businesses to strengthen long-term growth.
Patchara Samalapa, co-president of Kasikornbank (KBank), said the bank has held discussions with 4-5 potential foreign partners to jointly invest in Kasikorn Asset Management (K-Asset).
The bank wants a strategic partner who can help develop its infrastructure system and pave the way for business expansion in the longer term amid a changing landscape in the digital era.
"We want a partner to help us strengthen and sustain the business for the long run. But the bank has no policy to sell K-Asset because asset management is one of our core businesses," Mr Patchara said.
KBank has not set a specific timeframe to finalise the deal but wants to conclude a deal as soon as possible or within this year, he added.
The bank will consider several options for a joint-venture deal, including a shareholding in K-Asset, he said.
The partner can secure shares in K-Asset of less than 50%, 50%, or more than 50%. But any option should be a win-win solution for KBank and the partner and be in line with the bank's objective to provide better service response to customers' demands, Mr Patchara said.
A source from the banking industry who requested anonymity said KBank is talking to a number of potential partners, including JP Morgan Asset Management, Amundi Asset Management, Schroders Asset Management and BlackRock Investment Management.
JP Morgan and Amundi are likely to have the greatest potential for a joint investment deal because of their strong expertise in the business segment, the source said.
Foreign asset management companies are keen to expand their businesses in Thailand, given the Thai market's high growth potential.
Savings and investments in Thai mutual funds have been rising. Thailand is an ageing society, so demand for savings and investments is expected to increase, the source said.
Meanwhile, Mr Patchara said KBank would also search for new business opportunities under the joint-venture strategy in accordance with the bank's recently announced 100-billion-baht strategic investment programme. The bank is expected to announce a joint-venture investment deal in a technology company.
The 100-billion-baht strategic programme includes KBank's accelerated investments in technology, technology-related acquisitions, commercial partnerships, and organisational development.
It has been speculated that Siam Commercial Bank (SCB) is likely to search for a partnership for its bank asset management business under SCB Asset Management (SCBAM).
A recent news report claimed that the bank's parent, SCBX, was considering options, including a sale of SCBAM.
However, SCBX told the Stock Exchange of Thailand on July 11 that the report was unfounded. The company said it assesses strategic alternatives, proposals and opportunities as part of its regular business operations.
