Thai banks are bracing for pressure on fee-based income as the central bank moves to standardise banking fees, despite strong growth earlier this year.
The country’s six largest banks reported combined fee and service income of 62 billion baht in Q1 2026, up 12.6% year-on-year. Growth was led by Krungsri, TMBThanachart (ttb), Kasikornbank (KBank), and SCB X, while Bangkok Bank saw a decline. On a quarterly basis, growth was modest at 3.4%, with some banks reporting slight contractions.
KBank chief Kattiya Indaravijaya said the impact of fee standardisation is expected to be manageable, with the bank focusing on cost reduction and expanding digital services. Wealth management, including investment and insurance products, remains a key revenue driver.
The Bank of Thailand plans to standardise 10–15 common fee items, particularly retail transaction charges, to ensure fair pricing and reflect lower costs from digitalisation. The new structure is expected to take effect next month.
Banks are increasingly shifting towards digital platforms and wealth-related services to offset potential declines, while institutions like ttb are expanding fee-based businesses across key segments and strengthening cross-selling strategies to support long-term growth.