Kasikornbank (KBank) projects marginal growth for this year, aligning with the current economic conditions. The bank’s loan expansion is expected to be modest, as outstanding loans decreased by 2.29% year-on-year for the first nine months of 2023. KBank aimed for a loan growth target of 5-7% for this year.
The bank remains cautious due to the uncertain recovery of the Thai economy and global uncertainties, implementing a selective loan strategy. The decline in loans was primarily attributed to the small and medium-sized enterprise, personal, home, and credit card segments, along with tightened underwriting policies and NPL management.
However, regional and auto loans saw an increase. KBank will determine its loan growth target for 2024 based on economic circumstances. Kasikorn Research Center expects Thailand’s GDP growth to reach 3.1% in 2024, revised from a forecast of 2.5% in 2023. The bank and its subsidiaries continue to focus on strengthening their financial status by prudently setting aside expected credit losses and maintaining asset quality.
KBank has no plans to sell its shareholding in subsidiary Kasikorn Asset Management (K-Asset), as it continues to contribute positive fee-based income to the bank. However, KBank remains open to collaboration with business partners to support its long-term expansion, particularly in the regional market under its AEC+3 strategy. K-Asset’s total assets under management outpaced industry growth, increasing by 5.7% in the first nine months of 2023.
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