KBank Private Banking Service and Lombard Odier boost investment products. These products are forecast to grow by THB20 billion amid a promising outlook for the global economy in 2H18

Stocks and Financial Services Press Releases Wednesday June 27, 2018 15:55
Bangkok--27 Jun--KASIKORNBANK

Private Banking Service of KASIKORNBANK (KBank) and Lombard Odier expect a promising outlook for the global economy without any sign of economic crisis in the US, Europe, China and emerging markets, based on an in-depth analysis of Dr. Samy Chaar, top economist from Geneva, Switzerland. The two institutions are poised to enhance investors' potential via provision of advice on portfolio allocations and an expansion of investment products by THB20 billion.

Mr. Jirawat Supornpaibul, KBank Private Banking Business Group Head, said "The private banking business in Thailand has experienced continued growth, and competition has intensified as evidenced by establishment of joint ventures and office set-ups of foreign service providers. This situation is a challenge for KBank. While our competitors may focus on investment and returns, KBank holds a broader and deeper perspective. We are aware that our High Net Worth Individual (HNWI) clients, who have large asset sizes always have considerable concerns. Their diverse assets are beyond capital markets. Globally, a variety of financial tools have been developed for efficient asset management, which does not only involve 'To Grow' assets, but also 'To Keep' and 'To Pass' on those assets to next generations. Through our partnership with Lombard Odier, a world-renowned private banking service provider, we have offered useful advice and various tools of wealth management for our clients in sync with their positions and prevailing market conditions. This collaboration has uplifted KBank's capability to match world-class financial institutions. The synergy of KBank's strength of being number one in the Thai market and Lombard Odier's 222-year experience as the world's leading private bank has built up Thailand's most comprehensive and distinctive private banking service."

Samy Chaar, PhD., Chief Economist of Lombard Odier - KBank's major partner, has provided interesting perspectives on the global economic outlook for 2H18 that "Overall, the world's economy will gain further traction across all regions, led by the US, followed by Europe and emerging economies; core economies have had healthier financial and fiscal standings. Meanwhile, the fiscal policy will remain accommodative to sustain the economy which is set to exhibit consistent and stable expansion, following acceleration in growth seen last year, thus being a boon to profitability of the business sector.

However, the global economy may be affected by such factors as protectionist measures adopted by the US and China, political uncertainties in Italy and Spain and the US Federal Reserve's policy rate hike. Despite the bullish interest rate trend, businesses are unlikely to be hampered by rising interest rates given that the global economy has been driven by positive economic activities and no sign of a hard landing or economic crisis is on the horizon. Investors should not be too anxious but take into consideration the economic fundamentals, listed companies' profitability and financial health of debt issuers when it comes to investment. Diversification holds the key; they should hold deposits, debt instruments, convertible bonds, stocks and commodities in their portfolio proportionately to their risk appetite. Investors are recommended to focus on equity instruments of Europe and emerging economies which are on a recovery path and poised for further growth."

"Whatever the global economic scenario, our private banking customers will be able to lead their lives without any worry. This is because KBank has already introduced investment innovations in numerous facets as options and to enhance our customers' capacity to accept and adjust risks in their investment portfolios through our recommendations toward risk reduction, long-term investment and stay invested so that they can accumulate regular gains despite changing economic conditions,"added Mr. Jirawat.

Currently, the customers do not only bring cash to invest, but may use other assets that are not as liquid as cash to invest as well, for instance, their family businesses, land and properties. By combining our expertise gained from Lombard Odier's private banking experience for over 222 years and our profound understanding of the Thai market, KBank's "Wealth Management" service has been improved to meet all the needs of our Thai customers. KBank therefore is the first and only bank in Thailand that is able to offer a complete private banking service.

KBank views that one of the main responsibilities of private banking service providers is "risk management for clients' assets" based on the fact that the global economy and international financial markets have become more unpredictable. The philosophies that KBank has always adhered to include (1) providing advice about a risk-based approach to asset allocation through mutual fund products, which can diversify risks more easily; (2) using a leverage process together with drawdown management to adjust risk levels; (3) developing products that are more responsive to market volatility such as principal-protected structured notes and life insurance products in parallel with taxes and succession planning; and (4) supporting investments in companies having an environmental, social and governance (ESG) strategy with an expectation to achieve a sustainable investing goal," concluded Mr. Jirawat.

KBank Private Banking Business realizes the importance of keeping, protecting and nurturing assets as well as passing on the family's estate and businesses to the next generation in order to reach the ultimate goal of providing services that are "Standing for Happiness" and "Structuring a Worry Free Life" for our clients to gain "Perfect Wealth".

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