ASEAN

Thai banks set for expansion amid ASEAN economies' growth

Thai banks set for expansion amid ASEAN economies' growth

A surge in regional business expansion is forecasted for major local banks in Thailand due to the growth potential of ASEAN economies. This outlook has been provided by Fitch Ratings Thailand, indicating promising revenue prospects for these banks through increased regional operations.

There are six D-SIBs in Thailand: Bangkok Bank (BBL), Kasikornbank (KBank), Krungthai Bank (KTB), Siam Commercial Bank (SCB), Bank of Ayudhya (Krungsri) and TMBThanachart Bank. Among these, BBL, KBank, SCB, and Krungsri have notably increased their operations in neighbouring countries.

Jindarat Sirisithichote noted that with the strong growth in Southeast Asian economies, particularly in Vietnam, Indonesia, and the Philippines, Thai banks have substantial opportunities for regional expansion. Fitch expects Thai banks to steadily grow internationally by establishing branches and seeking acquisitions. This approach will aid banks in diversifying their revenue streams and applying their locally acquired expertise to similar overseas markets. Announced in February, SCB's agreement to acquire a 100% share of consumer finance lender Home Credit Vietnam is an example of this strategic international growth. The acquisition is expected to be finalised in the first half of 2025, and will likely support SCB's international banking business in the long term.