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CTBC Bank to oversee LH Financial's trade finance, wealth management ops

CTBC Bank Co. Ltd.will dispatch a management team to oversee the wealth management and trade financeoperations of Thailand's LH FinancialGroup PCL upon commencing their planned strategic partnership, The Nation reported April 5, citing RuttPhanijphand, chairman and executive director of the Thai financial group.

The two companies plan to synergize in three areas of businesses,Rutt said. The first area is to jointly set up a top-tier wealth-management business,while the second is to establish a mid-cap business with cross-border propositionsso CTBC Bank can target Taiwanese clients as a core segment. The third segment iscorporate transaction banking and retail digital banking.

CTBC Bank will also appoint directors to sit on LH Financial'sboard.

CTBC FinancialHolding Co. Ltd., the Taiwanese bank's parent company, recently that the banking unit wouldacquire a 35.6% stake in LH Financial for 16.6 billion baht. The Taiwanese bankwill perform due diligence on the Thai firm and the transaction is expected to closeby the third quarter, the publication reported.

LH Financial's management team will not be affected by the arrivalof CTBC Bank, Rutt said, adding that the Thai group is seeking the Taiwanese company'sexpertise in order to strengthen its trade finance operations. 

The chairman added that CTBC Bank looks to focus on businessin Thailand, but LH Financial may pursue collaboration with the Taiwanese lenderin other ASEAN markets after CTBC Bank's capital injection into the partnership.

As of April 4, US$1 wasequivalent to 35.27 Thai baht.