CIMB Thai Bank (CIMBT) wants to strengthen its bancassurance business to support fee-based income, offsetting sluggish loan growth.
According to Bhudinan Sethanandha, the bank’s head of affluent and wealth management, CIMBT expects total first-year premiums from bancassurance to reach 670 million baht this year, up from 640 million in 2024.
Around 75% of this amount will come from life insurance, with the remainder from non-life insurance, he said.
Based on this year’s projection, 510 million baht of first-year premiums are expected to be generated from life insurance. CIMBT aims to double that figure to around 1 billion baht next year.
Mr Bhudinan said bancassurance plays a crucial role in supporting the bank’s wealth management growth. The segment typically contributes about 30% of total fee-based income for the wealth management business.
CIMBT plans to aggressively expand its wealth management operations over 3-5 years, he said.
Total assets under management under CIMB Preferred, the bank’s wealth management division, are roughly 400 billion baht. The bank wants to triple this figure within 3-5 years.
Insurance remains a key product for the segment, and the bank intends to focus on protection products in light of the slowing economy and a downtrend in interest rates, said Mr Bhudinan.
CIMBT offers a range of new protection insurance products designed to meet the needs of affluent customers amid weaker economic conditions and declining interest rates.
These products are designed to assist customers in comprehensive financial planning and long-term retirement preparation, aligning with the needs of Thailand’s aged society, he said.
The bank’s research centre is reviewing its Thai GDP forecasts for 2025 and 2026, respectively 1.8% and 2.3%. The Bank of Thailand recently revised its GDP projections for this year and next to 1.7% and 1.6%, down from 2.3% and 2.2%, respectively.
CIMBT expects the central bank’s Monetary Policy Committee to cut the policy rate by 25 basis points (bps) to 1.25% in December.
The MPC has cut the policy rate four times since October last year, a reduction of 100 bps. In 2025, the regulator has lowered the benchmark rate three times, reducing it to 1.5%.