Thai banks eye expansion in Southeast Asia (Photo: bangkokpost.com) Bangkok (VNA) – According to Fitch Ratings Thailand, driven by the growth potential of ASEAN economies, large local banks in the country are likely to see significant opportunities toexpand their regional business and enhance their revenue prospects.
Jindarat Sirisithichote, Associate Director for financial institutions at Fitch Ratings Thailand, said regional business expansion of large local banks rose markedly in 2023 after multiple cross-border acquisitions led to substantial overseas loan growth during 2020-2022.
Theinternational loan portfolio of domestic systemically important banks (D-SIBs)escalated to 10% of the total outstanding loans, a rise from 6% in 2020.
There are six D-SIBs inThailand, namely Bangkok Bank (BBL), Kasikornbank (KBank), Krungthai Bank (KTB), SiamCommercial Bank (SCB), Bank of Ayudhya (Krungsri), and TMBThanachart Bank. Amongthese, BBL, KBank, SCB, and Krungsri have notably increased their operations inneighbouring countries.
The official noted that with the strong growth in Southeast Asian economies, particularly inVietnam, Indonesia, and the Philippines, Thai banks have substantialopportunities for regional expansion.
In February 2024, the SCBannounced its agreement to acquire a 100% share of consumer finance lender HomeCredit Vietnam. The acquisition is expected to be finalised in the first halfof 2025, and will likely support the bank’s international banking business in thelong term.
Jindarat Sirisithichote said the growth in regional business opportunities hasencouraged the Thai corporate sector to expand offshore. Over the past decade,overseas direct investment has seen a remarkable increase of 223%./.
