KPB urges focus on risk management

Kasikorn Private Bank (KPB), Kasikornbank’s private banking unit, prioritises risk management rather than returns this year in building customer wealth amid a slew of uncertainties dampening business and the country’s economic growth.

“Good risk management should build quality companies and sustain business growth in the long run. Despite the wild stock swings amid several risks and uncertainties across the world, our investment strategy focused on risk management still offers positive returns to customers,” said Jirawat

Supornpaibul, head of the private banking business group.

The bank’s asset allocation strategy in 2020 focuses on three core themes comprising sustainable investment approach, a new dimension of wealth sharing, and S-curve innovation under environment, social and governance, he said.

Ploughing money into quality investment assets would provide a cushion against unexpected situations, said Mr Jirawat.

The bank’s two equity mutual funds have a theme to invest in assets contributing positive returns amid capital market volatility largely stemming from the coronavirus outbreak, he said. K Positive Change (K-Change) and K Global Hi-Impact Thematic (K-up Hit), which invest in positive-impact and mega-trend equities, respectively, delivered returns of 10% each.

The bank launched the two mutual funds a year ago.

KPB’s customers are required to have minimum assets under management of 50 million baht each.

Mr Jirawat said the bank also focuses on advisory services and plans to offer risk management services to private foundations, charities and community enterprises to help them improve operational efficiency and financial management, as well as contribute better returns on asset allocation.

Another area of emphasis is business matching between its traditional business customers and tech startups to help them transform to new innovative businesses amid digital disruption.

Most of KPB’s 700 local businesses and family customers are traditional business operators facing digital disruption, so technology development and innovation should help them survive and be sustainable, he said.

KBANK shares closed yesterday on the Stock Exchange of Thailand at 115.50 baht, down 12.5 baht, in trade worth 4.53 billion baht.