Standard Chartered Plc plans to transfer its Thai retail banking business to Thailand’s Tisco Financial Group Pcl next year, exiting an operation that the U.K. lender said lacked the scale to generate adequate returns.
The net asset value is about 5.5 billion baht ($153 million), according to a stock exchange filing by Tisco on Thursday, which didn’t disclose a price for the deal.
Standard Chartered will continue to operate corporate, institutional and commercial banking businesses in Thailand, but the small size of the retail operation made it “increasingly difficult to achieve the returns that we aspire to,” the lender’s Thai head, Plakor Wanglee, said in a press release.
The Asia-focused lender is targeting a turnaround after last year posting its first annual pretax loss since 1989. In a sign that the Thai operations were not a bright spot, Standard Chartered in February recorded a $126 million goodwill impairment on its business in the country.
One unit of Tisco Financial, Tisco Bank Pcl, will take over operations including personal lending, mortgages and deposits, while another, All-Ways Co., will take over the credit-card business, the exchange filing said. The deal is subject to approvals.
Tisco’s shares climbed 0.4 percent as of 12:21 p.m. in Bangkok on Thursday.