Banks ride on robust export growth

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Banks ride on robust export growth

Corporate October 22, 2018 01:00

By Somluck Srimalee
The Nation

Ten commercial banks last week reported a combined net profit of Bt163.61 billion for the first nine months, representing a 11.44-percent growth from the same period last year, due mainly to the country’s robust export performance and buoyant domestic demand.

Eight of the 10 announced single and double-digit growth respectively, led by the 54-percent surge of TMB Bank to Bt9.9 billion net profit for the first three quarters.

Krungthai Bank came second with a net profit of Bt24.31 billion, up 29.1 per cent year on year.

TMB Bank’s chief executive officer, Piti Tantakasem,said the bank recorded a Bt12billion gain from the sale of 65 per cent of its subsidiary TMB Asset Management Co Ltd (TMBAM) to Eastspring Investment (Singapore). It benefited from the change in status to being a 35-percent associate company of TMBAM. With higher pre-provision operating profit, the bank also increased its provision in preparation for IFRS 9 and asset quality management. Coverage ratio, as a result, increased to 157 per cent from 143 per cent as of December 2017.

Siam Commercial Bank (SCB) recorded Bt32.98 in net profit for the period, down 2.9 per cent from last year, despite it being much higher than most of the others. (see graphic).

The bank’s president and chief executive officer, Arthid Nanthawithaya, explained the fall in net profit to the bank’s huge investment in its Transformation Programme, which he said had hiked the bank’s operating expenditure. Total operating expenses in the third quarter went up 13.6 per cent year on year, driven by the implementation of its transformation projects, investments in new technology platforms and acquisitions, he added.

Kittiphun Anutarasoti, president and chief executive officer of CIMB Thai Bank Plc, said the bank recorded a consolidated net profit of Bt537.4 million, down Bt 17 million or 3.1 per cent year on year, due to higher operation expenses and lower income from service fees.

Bank of Ayudhya Plc president and chief executive officer Noriaki Goto estimated the bank’s growth this year at 810 per cent.

Barring an escalation in trade protectionism and its potential impacts, the Thai economy is expected to sustain its growth momentum, supported by the strengthening global economy, larger government spending and investment, a more pronounced recovery in private investment and improvement of the overall income conditions, he said.

Noriaki is optimistic of reaching the bank’s full-year growth target, given sustained improvements in the business environment and the seasonal rise in both retail and commercial lending in the fourth quarter.

Minor woos tech disruptors of food

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William E. Heinecke, right, founder and group CEO of Minor International, and Krating Poonpol, left, managing partner of 500 TukTuks and founder of Disrupt Technology Venture.
William E. Heinecke, right, founder and group CEO of Minor International, and Krating Poonpol, left, managing partner of 500 TukTuks and founder of Disrupt Technology Venture.

Minor woos tech disruptors of food

Corporate October 22, 2018 01:00

By Asina Pornwasin
The Nation

Minor Group has joined hands with Disrupt Technology Venture and 500 TukTuks to arrange a business and technology hackathon called “Minor Tasting The Future” to find the new disruptors in the food industry.

The move is part of Minor Group’s efforts to pave the way for it to scale new heights of success in the next 50 years, with a vision to transform the food retail service in Thailand and Southeast Asia. Also, the move is expected to create Thailand’s first startup unicorn and position the country as the food tech centre of Southeast Asia.

William E Heinecke, founder and group chief executive officer of Minor International, said the company has to prepare for potential disruptors to its business to make sure it is investing in the right places and products. It is time to find new ways of thinking and new pathways to growth and to create value, he said.

The choice is to disrupt or wait to be disrupted, he said. “New technology and innovations are quickly changing the way people do business, the way customers shop, and the ways they share their opinion and experience. It is no longer just company versus company, but also competing in platforms and ecosystems,” he added.

“Only the fastest, most innovative, most adaptive companies will thrive, therefore, it is incumbent on us to look forward to the way things will be, so we can stay two steps ahead of the competition,” said Heinecke.

To continue the success in the next 50 years, Minor must find new partners, innovators and disruptors who come up with fresh perspectives, unconventional ideas, and the courage to pursue their visions.

“I believe that the combination of corporate power and startup agility will prove to be a winwin for all involved,” said Hieneke.

Krating Poonpool, managing partner of 500 TukTuks and founder of Disrupt Technology Venture, said that the food value chain is being disrupted entirely from farm to fork.

He added that the world of technology is currently transitioning from the era of digital disruption towards tech disruption and food tech is one of the most exciting areas.

The food tech market is massive. The worldwide food tech market is expected to be US$250.43 billion by 2022. Meanwhile, the food tech market in Southeast Asia is expected to be US$10.01 billion by 2022.

“Food, Agriculture and biotechnology are the next big digital wave. From farm to fork, all areas of the food supply chain will be disrupted. We are looking for disruptors who can create food and dining innovation in Thailand,” said Krating.

This represents a huge opportunity for Thailand. Thailand can become the centre of innovation in the food and food retail sectors in Southeast Asia. This sector has a strong potential to create the first startups unicorn of Thailand, he said.

The collaboration with Minor Group is to kickstart the creation of food and food retail innovation ecosystem in Thailand with sustainable support in terms of funding, strategic partnerships and scaling, he added.

The hackathon is looking for innovative ideas in the areas of “The Future of Food Retail Service”, “The Future of Franchise”, “The Future of Dining for Ageing Society”, “Digitisation of Restaurants”, “Dining for the Hyper Millennials”, and “Delivery 4.0 and Beyond”.

Participants will be mentored by leading business executives and entrepreneurs such as Heinecke and Krating themselves as well as Yod Chinsupakul, chief executive of Wongnai and Natavudh Pungcharoenpong, chief executive officer of Ookbee and many other leaders mentos of Thailand and SEA.

The winning team will receive Bt100,000, the first runnerup will receive Bt70,000, and the second runnerup will receive Bt50,000. Most importantly, all the winners will have the opportunity to receive long-term support from Minor Group and 500 TukTuks.

Applications open today until November 9. The finalists will be announced on November 16. Only 100 people from 20 teams will be selected to participate in the hackathon, which will be on December 12.

Recipe for SUCCESS

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PAISARN “Sam” Aowsathaporn
PAISARN “Sam” Aowsathaporn

Recipe for SUCCESS

Corporate October 20, 2018 01:00

By KWANCHAI RUNGFAPAISARN
THE NATION WEEKEND

6,920 Viewed

PAISARN “Sam” Aowsathaporn is passionate about food. His love affair with the kitchen has not only served up the basis of a healthy lifestyle, it has been the springboard for a successful career in the highly competitive food industry.

However, for the young Paisarn, his career trajectory appeared to be pointing elsewhere.

Now executive vice president of Oishi Group Plc, Thailand’s leading operator of Japanese restaurants, Paisarn recalls he never thought that he would end up working in the food industry.

He says that when he was young he always wanted to be an advertising creative or salesperson. After graduating from Bangkok Commercial Campus, Paisarn went to the United States to finish his undergraduate studies in 1984. Upon graduation, he moved to Boston for postgraduate studies at the Graduate School of Boston University in 1987. It was then that he began working part-time in a nearby Thai restaurant to earn pocket money and stretch his income for student life.

 “I started working in the kitchen doing most of the prep work, like cutting vegetables and meats as well as dishwashing,” Paisarn says. “I worked my way up to be a cook and fell in love with cooking. I enjoyed doing more work in the restaurant and started to experiment more in my cooking and understanding better all the ingredients. After a couple years of working in the kitchen, I got a chance to work in the dining area as a waiter and got promoted to be a restaurant manager.

“I truly found what I loved to do and I’m passionate about it. I loved every minute of my time spent in the restaurant – it became my second home. Every single day, I was looking forward to coming into the restaurant and serving my customers.”

He says many of his customers became friends, so close that they were like relatives to him.

“With some of them, I not only used to serve them but also witnessed their life stories unfold – from when they were dating, then getting married and having kids – as they kept returning to the restaurant,” Paisarn says.

“My happiness was to see how much they enjoyed the food and the laughter they shared with their friends and family. Ever since that time, I continued to develop more and more to impress my guests – who became my friends – every single time they visited me. And that experience changed my whole life. It was the start of a journey that has seen me continue to explore more and more new ways of doing things in the food business.”

In 1999, Paisarn came back to Thailand for the first time since he left for the US as a young student. He had received a call from his sister that their mother had become sick and that he should spend some time with her before it was too late.

He recalls thinking that he would stay for perhaps just two years or so in Thailand.

For his first job in his native country, Paisarn worked for KFC as an area manager. It was quite a new experience for him to work in the so-called QSR (quick service restaurant) scene. He thought he knew it all, but soon realised it was a challenge and a good experience for him to learn about chain restaurants. After two years, Paisarn had decided to return to the US.

But he looks back on it as fate that his ex-boss from KFC happened to go to work for Dhanin Chearavanont, chairman of the Charoen Pokphand Group (CP Group). He was asked to join in with the task of developing a restaurant for processing foods under the vision of “Kitchen of the World”.

“I ended up working here for a further two years and learned a great deal about processing food and food factory practice,” Paisarn says. “After two years, I felt I had enough and still wanted to return to the USA. It didn’t go as planned.

“I got another call from my ex-boss who used to be CEO of Yum Thailand. He asked me to join Oishi Group. I don’t know why I accepted the offer, but I know I did make the right decision. And here I am still in Thailand and still working for Oishi Group. Time is absolutely flying fast. Before I realised it, I had already been in the food business for over 30 years.”

Paisarn said says that running a restaurant business these days is quite a challenge. It seems very easy to enter this market, but difficult to sustain the business. He counts off the statistic that only around one in 10 new openings survive.

“This is especially so in the digital era, as there is no longer a one-size, one-format fits all. Consumers are getting more complicated and want more personal touches,” he says.

“The lifecycle of the restaurant business is also getting shorter and shorter. What that means is that the restaurant market is changing constantly, and we need to cope with the rapid change, especially in the digital era. We need to understand our customer deeper in the details in order to capture them and activate them to buy our products.”

Paisarn says that at Oishi the company is continuing to grow the market to cover the everyday needs of consumers, from morning until late at night.

“There are still many opportunities for us that we haven’t tapped into such as desert cafe, breakfast, delivery, drive-through, or even auto machines,” he says. “Our strategy is not only market growth in Thailand, but also in the Asean region. Currently, we have two restaurants in Myanmar, and plan to open more in Cambodia and Laos. For our existing outlets, we are continuing to revamp the brands to cope with the changes in consumer behaviour.

“New models, new desires, new technology, new devices, new products, new ingredients, and new nutrition are among the things that we are working on in order to advance ourselves amid the competition and gain more trust for both the current and new customers – especially the young generation.”

Paisarn says the key challenge faced by restaurant operators today – and in the future – is that consumer behaviour is rapidly changing. Customer expectations are changing, “and that means providing a consistent brand experience is growing more difficult”. Enterprises are also struggling to keep up with trends in mobile technology.

Regarding the shift in customer preferences, Paisarn says today’s restaurant customers, especially millennials, have higher standards than ever. “Concerns about diet and nutrition, food allergies and sensitivities, the sourcing of ingredients, and sustainability are all taking centre stage in the minds of consumers,” he says.

As for brand management, he says most of the brands in the sector are struggling with what he calls the reputation economy.

“This is the situation in which a brand can live or die based on what is being said about them online,” Paisarn says. “The challenge for our brands is that reviews on sites reflect customer experiences in individual locations, not with the brand as a whole. The studies show that eight out of 10 consumers trust online reviews about a business as much as a personal recommendation.

“The more locations that our restaurant have, the more difficult it is to maintain a consistent experience across all of them, and this is often reflected in online ratings and reviews. We must focus our energy on keeping the experience consistent among our brands.

“We must also ensure valuable customer information is captured across the board, from in-store surveys to the corporate call centre. Lastly, we have to do well to track what’s being said about our brand on social media and review sites. This will allow us to identify the key issues, respond to trends, and head off future problems.”

As part of these changes, Paisarn says mobile technology is continuing to change the game.

“New data make it clear that mobile experiences, especially with online ordering, are presenting even higher stakes for restaurant brands,” he says.

“The studies also shows that there is a strong relationship between online ordering and brand loyalty. As mobile ordering gains popularity, we will be under pressure to provide frictionless experiences within our mobile apps. Customers have high standards for in-apps experiences, and expect to be able to easily view menus, make a reservation or communicate with us.”

As for Paisarn’s personal interests with food, the concept of dining out has never lost its lustre for him.

“Since starting out in the restaurant business, I have became ever more passionate about food. I enjoy going to any of the top restaurants that come with good reviews, the famous restaurants, including those that are the most talked about in town,” he says.

“The reason for me is to gain more knowledge and understand why these restaurants are so successful. And learn the keys to their success. The fastest way to be the best is to learn from the best. And I took those experiences to my own restaurant, adding more value for my customers,” he says.

On the personal side, Paisarn lists travel high up among his passions. “Whenever I have an opportunity to visit a new place – whether a village, a city, a mountain or the seaside – I never miss it. It is so thrilling to see a new place and meet different kinds of people and learn more about their cultures,” he says. “Whenever I travel around a new place, I take many pictures – not only of the place, but the people, the food, the buildings and the like. It gives me immense satisfaction and pleasure. Though these hobbies are expensive, it gives me a lot of inspiration in my life and work.”

However, Paisarn concedes that it is hard to achieve work-life balance. But, he adds, if you love what you do, you will never work a day in your life.

“My challenge is how to prioritise between my work and my personal life. It’s very important for me to do so. Why? It is simply because it can result in unhealthy levels of stress, unhappiness, and even reduced productivity. I set my own rules, dividing them into three parts: effective time management at work; proper nutrition, sleep and exercise; and quality time with family, friends and other loved ones,” he says.

“For effective time management at work, I probably – like many others – have difficulty in managing time at work, especially if you work 24/7 at the call of your boss.

“To manage that, I have to set a daily schedule and stick to it, and allow myself a certain amount of time per task. I try not to get caught up in less productive activities, such as unstructured meetings that tend to take up lots of time. I also learn how to say ‘no’ when I am up to my capacity.

“In reality it’s not going to be easy, but I try to. And if I can avoid it, I will leave the work at work. I just simply shut the diary, turn off my notebook, store my messages and leave it. Sometimes, we just have to forget about perfection even though it’s probably unlike you; otherwise, you may get stressed out from that.”

He says that all people need proper nutrition, sleep and exercise. However, every company expects their employees to work more and to earn more revenue and profit. “It ends up that we all have an overload of work. Likewise, top management is not exempted from that. Many think being a top manager means you have more luxury time. It’s not quite true; as long as you are still an employee you are not an owner,” Paisarn says.

“What I learned about work overload is that it is often unavoidable. The only things that really help to balance your life are eating well, sleeping at least six hours a day, and exercising at least three times a week. Fortunately, I’m in the food industry. I quickly understood my own body, what nutrition I need, and to control my weight and calories. I’m pretty much on the scales every day.

“ When I start to become overweight, I start to hit the gym more often to burn off the fat. My trick is to find a gym near my office within walking distance, and hire personal trainer to help keep me in shape. Discipline is very important when it comes to working out. I have to fix my schedule for gym days, and do not take any appointments on that evening after work at all.”

As for spending quality time with family, friends and other loved ones, Paisarn stresses the importance of this need. “After all in life, we all want to earn enough money and to spend time with our family and loved ones, but we are tending to spend more time at work. We all feel that we can never finish our work and never earn enough money to able to spend quality time with family and loved ones.

“But, in recent years, I discovered that no matter how many hours you put into work, it never ends. The worst thing is that it’s causing you ever more stress. So, I decided to set up rules at work and try to reduce my overall hours as I mentioned.

“This means that I can have more time to socialise with friends in the evening, spend time with my family on the weekends, and also have time to go to the gym. I started realising that I work so hard because I want to spend the money that I earn to keep my loved ones and family happy.

“It would be meaningless if I were to have more money but didn’t have time for them and that this made them unhappy. Remember, without you at work, the company can always find someone to replace you and it will still function, but no one can replace you within your family.”

Fraser Property Holdings debentures rated ‘AA-‘

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Fraser Property Holdings debentures rated ‘AA-‘

Corporate October 19, 2018 18:05

By The Nation

TRIS Rating has affirmed the ratings on the outstanding guaranteed debentures of Frasers Property Holdings (Thailand) (FPHT or Issuer) at “AA-” with a “stable” outlook.

The debentures are issued under FPHT’s Bt25 billion debenture program and fully guaranteed by Frasers Property Ltd. (FPL or Guarantor). FPHT is a wholly-owned subsidiary of FPL.

The issue ratings reflect the creditworthiness of the guarantor (rated “AA-/Stable” by TRIS Rating).

Under the terms of the guarantee agreement, FPL will provide an unconditional and irrevocable guarantee of all amounts due under the terms of the debentures, including the principal, plus any accrued interest, and other related expenses.

The guaranteed debentures will rank equally with all other unsecured and unsubordinated obligations of FPL. The guarantee agreement is governed by the laws of Singapore.

The ratings reflect FPL’s exceptional business profile, underpinned by its solid track record in the real estate business, well-diversified portfolio of quality assets in terms of geography and asset types, sizeable recurring income base, and active management of capital.

These strengths are partially offset by its high leverage resulting from a series of acquisitions made in recent years as FPL aggressively grew its portfolio of recurring income assets.

Thai listed companies ‘more responsible’, CGR report shows

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Thai listed companies ‘more responsible’, CGR report shows

Corporate October 19, 2018 18:02

By The Nation

The 2018 Corporate Governance Report of Thai Listed Companies (CGR), conducted by the Thai Institute of Directors (IOD) with support from the Stock Exchange of Thailand (SET), showed a ‘very good’ result and marked a historical high at 81 per cent.

The outcome demonstrated that Thai listed firms became more responsible to stakeholders while seeking to achieve sustainable growth in alignment with the global corporate governance trend.

The 2018 CGR assessment of 657 listed companies resulted in an average score of 81 per cent, the highest level since the commencement of CGR project in 2001, and up from 80 per cent in 2017 (620 companies), reflecting improvement in most key categories, IOD Chairman Prasan Chuaphanich said at the 2018 CGR seminar on Friday.

The average scores of Thai listed firms exceeded 80 per cent in four categories, including Rights of Shareholders (94 per cent), Equitable Treatment of Shareholders (92 per cent), Disclosure and Transparency (85 per cent), and Role of Stakeholders (80 per cent).

Based on the 2018 findings, 557 companies achieved scores of 70 per cent (three star) or higher. Some 174 companies (26 per cent) scored 70-79 per cent (three star), 241 companies (37 per cent) had average scores ranging 80-89 per cent (four star) while 142 companies (22 per cent ) scored over 90 per cent (five star).

“The result depicted commitment of Thai listed firms, regardless of their sizes, in continuous development of CG standards. Most companies emphasised on business growth alongside interests of other stakeholders, which is in accordance with international CG trend that has shifted from shareholder-centric to stakeholders-centric approaches,” said Prasan.

Thai Watsadu drives into fast-fit auto service

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Thai Watsadu drives into fast-fit auto service

Corporate October 19, 2018 16:43

By The Nation

Due to the growth in the automobile market, CRC Thai Watsadu, a home improvement centre operator, is launching Auto 1 fast-fit service.

The first Auto 1 branch will be located at Thai Watsadu Pathum Thani, offering a variety of services as well as local and imported products, the company said in press release on Friday.

The company is also offering promotions and points rewards for special privileges and discounts via the Central Group’s “THE 1” card.

The company plans to open Auto 1 outlets at all Thai Watsadu branches to serve motorists nationwide.

Suthisarn Jirathiwat, chairman of CRC Thai Watsadu Co Ltd for construction material and home decor business, said the automobile market in 2017 reached 871,650 units, while it is expected that Thai auto sales will exceed 950,000 units in 2018, an increase of 5 per cent.

He said the total registration of automobiles in Thailand (January 31, 2018) has reached 17 million (not including 20 million motorcycles). This shows the growth trend of the auto market in Thailand, and this benefits related businesses, particularly the quick service or fast-fit businesses, which reached a value of Bt34 billion last year.

“The fast-fit business has been growing alongside the automobile market, at a pace of 4-7 per cent per year,” he said. “Today more and more consumers are taking their vehicles to fast-fit services, due to the rather high servicing fee of authorised service centres, as well as lack of confidence in the capability of local garages. These are the factors that made us see that there are marketing and growth possibilities for this type of business.”

Two more Auto 1 branches are planned for this year – Bangbuathong and Bangphli. The company plans to open 40 Auto 1 branches by 2020.

“Smile Price Hello Winter” for domestic routes from THAI Smile, starting from Bt1,150

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“Smile Price Hello Winter” for domestic routes from THAI Smile, starting from Bt1,150

Breaking News October 19, 2018 13:24

By The Nation

THAI Smile Airways invites you to fly for domestic routes with “Smile Price Hello Winter” promotion starts at Bt1,150/person/trip (all inclusive).

The promotion comes with full services, free 20-kg-baggage allowance, meal and beverages on board.

Make a reservation from October 24-31, 2018 and travel from November 1, 2018 until December 31, 2018 via http://www.thaismileair.com, Call Center 1181 or 02-118-8888, Smile Service Centers and Smile Agents nationwide.

Terms and conditions apply and are subject to change without prior notice. This price is limited and may not be available on some flights. Fly with the number one airline in Thailand, the Best Airline in Asia and the best economy seats in Asia guaranteed by TripAdvisor Travelers’ Choice Awards 2018.

Grab names first chief technology officer for transport

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Mark Porter, Grab's chief technology officer for transport
Mark Porter, Grab’s chief technology officer for transport

Grab names first chief technology officer for transport

Breaking News October 19, 2018 12:43

By The Nation

Ride-hailing service Grab has appointed Mark Porter as chief technology officer for transport, overseeing the company’s technology infrastructure and teams dedicated to its private car hires, taxi-hailing, motorbike taxis, carpooling and multimodal services.

Grab has carried 2.5 billion customers in Southeast Asia since its launch in 2012. As Grab continues to scale up to be the region’s largest ride-hailing platform, Porter will ensure its technology infrastructure is robust enough to deliver high standards of reliability and stability and at the same time agile enough to support constant product innovation.

“More than one in six Southeast Asians ride with us and millions earn income with us as driver partners,” said Theo Vassilakis, group chief technology officer. “Beyond delivering safe, affordable and convenient ways to travel, we have a big responsibility to ensure that our systems remain stable and reliable even as we continue to grow. We know that, when things don’t work, it’s more than the inability to get a ride – it impacts on people’s livelihoods.

“At the same time, the pace of innovation at Grab means that we need to design, build and ship features in as short a time as a week. This is critical to ensure we can keep pace with how our customer needs and the market landscape evolve. With his deep systems expertise, there is no one more capable or experienced than Mark to ensure Grab’s technology infrastructure is safe, robust and fit for purpose.”

Porter will also oversee the development of agile platforms and machine learning, AI, and data-science capabilities to deliver a safer, more seamless and personalised transport experience.

Based in Seattle, he will lead and work with engineering teams across Grab’s global network of six R&D centres in Singapore, Seattle, Beijing, Bangalore, Ho Chi Minh City and Jakarta.

Amway unveils Artistry Studio cosmetics for the new gen

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Amway unveils Artistry Studio cosmetics for the new gen

Corporate October 19, 2018 12:31

By The Nation

Artistry by Amway (Thailand) has unveiled the Artistry Studio NYC Edition line of makeup inspired by the bright lights and colours of New York City and designed for young people with active lifestyles.

Marketing campaigns will roll out aiming to boost sales in Thailand beyond Bt2.2 billion this year.

“Guided by Amway’s focus on the new generation, our efforts have extended to cosmetics,” said Ratana Channara, marketing director of Amway (Thailand).

“This time, we have coloured up the image of Artistry by unveiling the trendy brand ‘Artistry Studio’ with cosmetics based on inspirations from the hottest cities around the world. Artistry Studio NYC Edition captures the bold and energetic spirit of vibrant New York City and is a collaboration with famous New York artist Lady JDay, who contributed to the packaging design.

“On marketing strategy, we will reach out to new-generation women through both online and on-ground channels. For example, the Artistry Passionista Contest will seek out women who are truly passionate about beauty. The 100 Looks 100 Passions campaign will show how Artistry can create 100 different looks for the same model. The Artistry Virtual Beauty application has been created so women can virtually put on Artistry cosmetics. And makeup workshops have been organised for Amway business owners as well,” Ratana said.

“On top of this, Artistry has sponsored the Busan International Film Festival for seven consecutive years. At the latest event, Artistry Studio Gallery was set up to deliver beauty experiences to Amway business owners, movie fans and other visitors to the festival.

“The Artistry Studio Gallery also featured the special works created by Lady JDay. Amway Thailand also sent out invitations and brought new-gen and high-level Amway business owners from Thailand to the event so that they could enjoy the special experiences there and share them later with customers and consumers.”

Kasikornbank announces nine-month profit of Bt31.42 billion

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http://www.nationmultimedia.com/detail/Corporate/30356758

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Kasikornbank announces nine-month profit of Bt31.42 billion

Breaking News October 19, 2018 10:36

By The Nation

Pipit Aneaknithi, President of Kasikornbank has announced a net profit for the bank and its subsidiaries of Bt31.42 billion for the first nine months of 2018, an increase of Bt2.79 billion or 9.76 per cent – over the same period last year. Most of the improvement is being attributed to the bank setting aside lower allowances.

Moreover, net income from interest increased by Bt2.92 billion – or 4.17 per cent – mainly due to increased interest income from loans to customers, investments, plus Interbank and money market items.

Net interest margin (NIM) stood at 3.41 per cent, while non-interest income decreased by Bt3.52 billion – or 7.34 per cent – due mostly to a decrease in net premiums earned and fees waived for money transfers through digital channels. However, revenue from money market products increased from foreign exchange transactions.

Other operating expenses increased by Bt1.45 billion – or 3.07 per cent – mainly due to marketing and employee expenses, resulting in a cost to income ratio that stood at 41.60 per cent.

Operating performance for the third quarter of 2018 compared with the second quarter of 2018, KBank and its subsidiaries reported net profits of Bt9.74 billion, a decrease of Bt1.17 billion, or 10.75 per cent.

Net interest income increased by Bt637 million or 2.62 per cent.

NIM stood at 3.43 per cent, while non-interest income decreased by Bt3.18 billion or 19.63 per cent due mostly to net premiums earned – net and revenue from capital market product as a result of a one-time sale of securities and dividend income. Moreover, other operating expenses decreased by Bt471 million or 2.83 per cent, resulting in the cost to income ratio in this quarter that stood at 42.58 per cent.

As of 30 September 2018, KBank and its subsidiaries’ total assets were Bt3.05 trillion, rising Bt152.96 billion or 5.27 per cent over the end of 2017. The majority came from an increase in investment – net and loans. NPL gross to total loans as of 30 September 2018 stood at 3.30 per cnt same as the end of 2017. Coverage ratio as of 30 September 2018 stood at 155.95 per cent, rising from the end of 2017 that stood at 148.45 per cent. In addition, as of 30 September 2018, the bank’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.96 per cent, with a Tier-1 Capital ratio of 16.50 per cent.