Krungthai Bank (KTB) is targeting moderate loan growth this year, supported by the government sector and increased public investment.
According to Payong Srivanich, president of the bank, KTB wants to sustain positive loan growth this year, building on last year's performance.
The government's investment plans present a significant opportunity for the bank to expand its wholesale loan portfolio, catering to both government and corporate clients, he said.
KTB, Thailand's second-largest lender by total assets and the leading state-owned commercial bank, reported a 4.7% year-on-year increase in total loan growth for 2024.
Loans to government and state enterprises drove the bank's growth, increasing by 39.1%, while mortgages rose by 4.9%, according to the bank's financial statement to the Stock Exchange of Thailand.
In contrast, the other four major banks recorded flat or minimal loan growth in 2024 and are projecting only marginal increases for 2025.
Mr Payong said KTB would continue providing financial support to small and medium-sized enterprises (SMEs) to enhance their competitiveness.
The bank also plans to cautiously expand its retail loan portfolio, with a focus on mortgages.
"Loan growth for SMEs and individuals will be selective, in line with economic conditions and household debt levels, which continue to affect repayment capacity in these segments," he said.
KTB also plans to maintain its debt relief measures for vulnerable SMEs and retail customers, offering long-term restructuring programmes under the Bank of Thailand's responsible lending practices and its recent "You Fight, We Help" initiative.
Alongside these efforts, Mr Payong said other government stimulus measures and investment plans are expected to accelerate economic recovery and improve household incomes. This should enhance borrowers' repayment capacity over the medium to long term, he said.
The bank reported an increase in return on equity (ROE) to 10.4% at year-end 2024, up from 9.4% the previous year.
KTB aims to sustain this double-digit ROE by exploring new growth opportunities, including virtual banking.
According to Mr Payong, a virtual bank licence will enable KTB to expand its services to unserved and underserved segments, improve financial literacy nationwide and bolster its ROE.
KTB partnered with Gulf Energy Development, Advanced Info Service and PTT Oil and Retail Business to form a consortium, applying for a Bank of Thailand virtual banking licence.
The central bank is expected to announce the virtual bank licence winners by mid-2025.
Successful applicants have a one-year preparatory period before launching operations.
