CIMB Thai Bank is studying shortening working hours to reduce salaries and reallocating working space to cut costs.
Fewer working hours a future possibility
CIMB Thai Bank (CIMBT) is studying shortening working hours to reduce salaries and reallocating working space to cut down on operating costs to adjust to the post-pandemic era.
Cutting staff hours is one option to reduce costs and the bank may rent working space in the outskirts of Bangkok, said president and chief executive Adisorn Sermchaiwong.
“We may reduce working hours and decreasing operating costs by lowering salaries to sustain our business in the long run. Digital methods may be adopted for traditionally humanoperated services that have low activity,” he said.
A remodel is another option to control operating expenses, but it has not been finalised, said Mr Adisorn. Social distancing is still crucial without a coronavirus vaccine, so staff need more space.
CIMBT, of which a 94.8% stake is owned by the Malaysia-based CIMB Group, expects overall business activities would remain sluggish following the pandemic because of low consumer confidence as long as there is no vaccine.
At the same time, some businesses may need to take more time to adapt to the new normal for business operations.
The bank plans to speed up digital banking services to generate income in line with the fast-changing financial behaviour and lifestyles of consumers ignited by the outbreak.
Mr Adisorn said the bank will continue to develop a digital platform to catch up with new normal.
CIMBT set an IT investment budget worth 600 million baht this year, but the investment has been a few months behind schedule because of the pandemic.
The bank wants to pay more attention to fee-based income, especially from mutual fund and bancassurance business, which still have high growth potential, he said.
The bank aims for a 1 billion baht in fee income from financial services this year and still expects to meet the target as the bottom low rates attract depositors and investors to shift towards highyield assets even though the income amounted to 400 million so far this year.
Corporate bond underwriting and distributing are other key areas that are generating fee-based income this year.
The bank was involved in underwriting 15 corporate bonds worth a total of 18 billion baht in the first half this year and 15 deals are in the pipeline to be offered in the second half.
Mr Adisorn will step down from CIMBT, effective from Sept 15, to head TMBAM Eastspring.
‘‘ Digital methods may be adopted for traditionally human-operated services that have low activity. ADISORN SERMCHAIWONG President and chief executive, CIMBT