KBank chairman’s exit seen as a part of succession plan
Banthoon envisioned retiring round 67
Though Banthoon Lamsam’s resignation from all administration roles and the board at his family-run Kasikornbank (KBank), efficient April 3, shocked the banking trade, the market believes that the 75-year-old financial institution will stay calm amid critical challenges from the coronavirus pandemic and digital disruption.
Mr Banthoon, who took excessive job from his father Bancha 28 years in the past, has paved the way in which for his departure for years by appointing 4 co-presidents to supervise enterprise. Kattiya Indaravijaya, who is without doubt one of the 4, has been his successor as chief govt and marked the financial institution’s first chief exterior the Lamsam household.
Handing over the reins to non-family member was not a shock. Mr Banthoon had sometimes mentioned {that a} industrial financial institution listed on the inventory market shouldn’t be a household enterprise, so KBank’s subsequent chief needn’t be somebody from the identical clan.
A supply in banking circles mentioned the 67-year-old banker’s resignation was constant together with his life’s timeline, which has been deliberate for a few years.
Mr Banthoon’s stepping down as KBank chief govt and chairman might be because of a want to dedicate extra time to his philanthropy, notably in Nan province, the place he has performed a big position in preserving and rehabilitating forests.
He initiated the social challenge referred to as the Nan mannequin in 2009. The challenge’s authentic purpose was to protect forests in Nan province, however its goals have been later prolonged to the advance of individuals’s lives and coexistence with the forests.
Tanadech Rungsrithananon, an analyst at UOB Kay Hian Securities Thailand, mentioned the succession plan has been within the making for a number of years, and such a transition can have little impression on the financial institution, on condition that it’s forward of the trade’s curve in adapting to the digital world and its capital is ample to cushion in opposition to financial shocks.
Ms Kattiya has intensive expertise in banking trade, he mentioned, and at age 50 nonetheless has a very long time to run the financial institution.
“The present tough scenario amid the financial downturn and the pandemic is the important thing problem for the brand new CEO, however all executives from all corners of the world additionally face the identical problem,” Mr Tanadech mentioned. “Sound fundamentals and robust teamwork will help KBank’s enterprise operations to beat the difficulties.
“With no administration place on the financial institution, he [Mr Banthoon] can contribute to one thing that he needs as a result of there isn’t any query about battle of curiosity anymore. He may have the rest to do within the social space.”
All through his 40-year working profession at KBank, Mr Banthoon made his mark within the banking trade.
Pushed by Mr Banthoon, KBank in 1994 pioneered a re-engineering technique that modified the panorama of entrance workplace service and prompted different banks to adopted go well with.
His principal achievement was steering the financial institution by the 1997 monetary disaster that worn out scores of economic establishments in Thailand, although the Lamsam household’s shareholdings, in flip, have been diluted to under 10%.
KBank is now the nation’s largest lender with belongings of three.29 billion baht on the finish of final 12 months and the most important cell banking service supplier with greater than 10 million customers.
One other supply near KBank’s former chief mentioned that it was Mr Banthoon’s intention to step down when he turned 67 or 68.
Regardless of his resignation from govt positions, Mr Banthoon will nonetheless help the financial institution as an adviser, notably for sustainable development, the supply mentioned.
KBank is a signatory to the UN Ideas for Accountable Banking of the United Nations Environmental Program Finance Initiative, or UNEP FI. It’s the first and solely Thai financial institution to hitch greater than 170 banks worldwide in signing the ideas.
The UNEP FI present the framework for a sustainable banking system and align the banking trade with society’s targets as expressed within the UN Sustainable Growth Targets and the Paris Settlement on Local weather Change.
The philosophy of sustainable growth is instilled in all the financial institution’s operations as a part of its Inexperienced DNA, guaranteeing most profit for all stakeholders and paving the way in which for sustainable development, Mr Banthoon has mentioned.
Mr Banthoon, who has been named by the financial institution’s board as chairman emeritus, is anticipated to take a full-time position within the Nan challenge after leaving KBank.
He advised reporters at his 60th birthday celebration held at his house in Nan province that he would keep there for the remainder of his life.
With out Nan, life can be very boring, he mentioned, including that he wished to do significant issues there.
