KBank is committed to capitalizing on the benefits of regional banking.

Thailand's Kasikornbank (KBank) has forecast revenue growth of 20% for its regional banking business this year, in line with economic growth forecasts for Indonesia, Vietnam and China. KBank Co-President Pipit Aneaknithi said the bank has secured a revenue growth of 25% in 2023 for its international banking business, named World Business Group (WBG). The group is aiming for revenue growth of 20% or more this year.

Vietnam and Indonesia are expected to show strong economic growth compared to their regional counterparts, Mr. Pipit said. KBank continues to focus on China and is monitoring the economy and the decline of the real estate market in that country to ensure cautious expansion. According to Mr. Pipit, KBank China has no credit risk in the real estate sector. He said, "We can control WBG's problem loans [NPLs] at a satisfactory 0.6% of total loans for this business segment." Even though the network in Indonesia has the highest proportion of problem loans at around 2%, this is manageable as the regional network generates high revenue growth.

KBank China and the Asia-Pacific market

KBank, the second largest bank in Thailand by assets, is expanding WBG as part of its "ASEAN Economic Community +3" strategy, which includes Japan, China and South Korea. In November 2023, KBank China opened a new branch in Beijing, becoming its fifth office in the country, to strengthen its regional service capabilities. Indonesia is another promising market with a population of 270 million, the largest in Southeast Asia, and KBank aims to advance its operations there. At the end of 2022, the bank increased its stake in Bank Maspion to 84.55%, becoming the controlling shareholder.

At the end of December 2023, total loans to WBG amounted to 2.49 trillion baht, or about 3% of the bank's total loan portfolio. Mr. Pipit said the bank plans to further increase business loans, aiming for growth of 3-5% this year. He added that with strong risk management, the bank wants to focus on controlling asset quality.

Sustainable banking

KBank also plans to develop sustainable banking both locally and regionally. The bank aims to increase sustainable financing to 200 billion baht by 2030 after it reached 74 billion last year. The amount of lending is set to rise to 100 billion baht this year. As part of sustainable financing and the transition to clean emissions, KBank is focusing on four main sectors: oil and gas, coal, cement and power. The bank believes that the use of renewable energy will continue to grow, replacing fossil fuels. It indicated that the use of alternative energy and fossil fuels should be roughly equal by 2030, due to the rapid growth of hydropower and solar energy. KBank is present in China, Japan, Vietnam, Indonesia, Cambodia, Myanmar and Laos.