Kasikornbank (KBank) aims to grow its lending by 5-7% and control the quality of its assets, with a non-performing loan (NPL) ratio target of less than 3.25%, according to its 2023 financial goals.
Kattiya Indaravijaya, chief executive of KBank, said in the bank's statement the Thai economic recovery in 2023 would gain traction from last year. Thai GDP is expected to grow by 3.7% this year, driven mainly by tourism following China's reopening.
She said tourist arrivals are unlikely to reach pre-pandemic levels until 2024, while there is a lingering risk from slowing exports as advanced economies slip into recession.
The bank predicts the Thai economy will have an uneven or "K-shaped" recovery as improvements vary across businesses amid persistently high operating costs, such as rising wages and interest rates, as well as high household debt, Ms Kattiya said.
The bank targets loan growth of 5-7% this year, mainly from a regional expansion strategy that seeks new sources of revenue alongside more diversification and greater corporate lending.
KBank aims to grow its corporate loans by 4-6%, small and medium-sized enterprise loans by 1-2%, and retail loans by 2-4%.
In a separate matter, KBank yesterday responded to reports that it is reviewing the strategies of Kasikorn Asset Management (K-Asset).
KBank told the Stock Exchange of Thailand (SET) it always seeks additional business opportunities and ways to create benefits for customers and shareholders across all its lines of business.
The statement said asset management is one of the bank's important businesses. As part of normal business practices, the bank may have discussions with many parties. Such discussions may not lead to any transactions.
If a transaction occurs, the bank said it will disclose information to the SET at an appropriate time.
A financial industry source who requested anonymity said KBank has decided to sell a major chunk of K-Asset shares to Amundi Asset Management.
Early last year, KBank co-president Patchara Samalapa said the bank held discussions with 4-5 potential foreign partners to jointly invest in K-Asset.
