The joint general manager of Mizuho Corporate Bank in Thailand, Mr Wakaume says the focus for the bank is sustainable growth.

''Despite being a smaller bank, we believe Mizuho is beautiful enough,'' he said with a smile. ''For our business operations, we place importance on both quality and quantity.''

The bank is one of three major Japanese banks operating in Thailand, with the others _ Sumitomo Mitsui Banking Corp and Bank of Tokyo-Mitsubishi UFJ _ boasting larger portfolios.

Mizuho's total assets in Thailand stood at 131.97 billion baht at the end of May.

Mizuho and its Japanese competitors pursue the same market, namely Japanese corporations operating in Thailand. Up to 80% of Mizuho's loan book is to Japanese clients, with the rest loans to Thais and other nationalities. The bank offers a range of deposit, loan, trade finance and treasury services.

Mizuho, which traces its operations in Thailand back more than 30 years, was restructured as Mizuho Corporate Bank in 2002 following the consolidation of Dai-Ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan (IBJ). Dai-Ichi Kangyo was renamed Mizuho Bank, with a focus on retail banking and small and medium-sized businesses, while IBJ was merged with the corporate entity. Fuji Bank, meanwhile, was transformed into Mizuho Corporate Bank, a corporate arm of the Mizuho financial group.

''Business in Thailand is at a lower risk than other countries, hence the narrow margins. But the return on assets for the branch is satisfactory considering the low risk,'' Mr Wakaume said.

Out of loans of 88.22 billion baht at the end of May, non-performing loans stood at just 118.56 million baht, or 0.15% of total loans. Gross NPLs were 274.8 million baht, or 0.34% of the portfolio.

Mizuho Corporate Bank operates 37 branches in 23 countries, with 20 branches located in Asia. Its customers include companies in the auto, energy, manufacturing, construction, chemical, textile and foods. Mr Wakaume said all of the major Japanese automakers in Thailand are Mizuho customers.

Mr Wakaume said the business volume from Japanese investors had significantly increased since the country's economy recovery following the 1997 economic crisis.

Thailand's strong fundamentals and relative economic stability are the key factors attracting the offshore investors into Thailand, he said.

''Japanese investors remain confident in Thailand, even though the economy is sagging somewhat. But uncertainties are part of the normal economic cycle,'' Mr Wakaume said.

Bangkok Post, 14.07.2008

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