In an effort to lessen the impact of US tariffs on Thai exports, Kasikornbank (KBank) is assisting its export clients in identifying new international markets to minimize potential disruptions.
Following the US’s imposition of a 36% reciprocal tariff on Thai exports, KBank identified the export and manufacturing sectors as the most vulnerable, according to chief executive Kattiya Indaravijaya during the bank’s shareholder meeting on April 9. However, US President Donald Trump later announced a 90-day suspension of tariffs for most countries.
Using the 36% tariff as a benchmark, KBank categorized its clients by risk levels to offer customized support.
“We promptly engaged with clients who could be affected, helping them find alternative export markets,” Ms. Kattiya stated.
The bank anticipates that the initial effects on its export and manufacturing clients will not significantly impact its loan portfolio, aligning with its risk diversification strategy, she added.
As Thailand’s third-largest lender by total assets, KBank is closely monitoring developments, including potential discussions between Thailand and the US following the Thai government’s decision to form a negotiating team. The bank will continue to evaluate the repercussions on each industry and individual client, Ms. Kattiya noted.
Regarding the recent earthquake in Bangkok, she mentioned that while the disaster did not greatly impact the bank’s customers, KBank provided some clients with financial assistance, such as additional credit lines and debt restructuring options.
In light of ongoing economic challenges, the Kasikorn Research Center has revised Thailand’s GDP growth forecast for this year to 1.4%, down from 2.4%. Nonetheless, KBank remains committed to its financial targets.
The bank aims for a growth rate of 3.3-3.5% in net interest income and mid to high single-digit gains in net fee income.
In addition to traditional banking, new financial services under KBank Group are expected to contribute to revenue growth, according to Ms. Kattiya. These services include initiatives from Kasikorn Investure (KIV), regional banking operations under Kasikorn World Business, financial innovations through Kasikorn Business Technology Group, and various digital banking platforms.
KBank, a leader in Thailand’s digital banking sector, serves both individual and business clients through multiple channels, including the K PLUS mobile banking app, K BIZ online banking for small and medium enterprises, Line BK, and the KIV digital platform.
Ms. Kattiya expressed confidence in KBank’s ability to meet customer needs across various business segments and remains optimistic about future growth, without concern regarding the imminent launch of virtual banks.
