Thailand's KBank targets 5-7% loan growth in 2023

Thailand's economy will recover unevenly, varying across different businesses, KBank's CEO noted.

Kasikornbank targets to grow its loans by 5% to 7% in 2023 and control its bad loans ratio to less than 3.25%.

The targets take into account the expected recovery of Thailand’s economy via a “K-shaped” trend. Thai GDP is expected to grow 3.7% in 2023 as tourism ramps up once more, especially with China’s reopening policy, KBank chief executive officer Kattiya Indaravijaya said.

“However, tourist arrivals are unlikely to return to pre-COVID-19 level until 2024, whilst risk lingers from slowing exports as advanced economies are lapsing into a recession. The Thai economy will therefore see an uneven or “K-shaped” recovery as improvement will vary across different businesses amid persistently high operating costs as evidenced by rising wage and interest rate trends as well as high household debt,” Indaravijaya said.

Credit cost is expected to be in the range of 175-200 bps, lower than the peak level in the previous year, KBank said.

KBank also shared their growth strategy: dominating digital payment, reimagining commercial and consumer lending, democratizing investment and insurance, and penetrating regional markets in the AEC+3 region.