Bangkok Bank (BBL) is focusing on four high-growth economies in Southeast Asia to drive its international banking business this year.
According to Charoenlarp Thammanichanond, executive vice-president and head of international banking, the four markets comprise Indonesia, the Philippines, Malaysia and Vietnam, with foreign direct investment playing a crucial role in accelerating GDP growth.
He said domestic consumption is a major driver of economic expansion in these countries as the large populations urbanise, contributing to their GDP growth.
"Urbanisation across Southeast Asia presents significant business opportunities for the bank, particularly in loan growth for infrastructure-related industries such as energy, real estate and transport," said Mr Charoenlarp.
Beyond corporate lending, the bank anticipates growth in trade finance and money remittance services, aligning with Southeast Asia's strong economic potential and increasing regional integration.
He said while globalisation drove economic growth before Covid-19, the post-pandemic period has shifted towards regionalisation due to geopolitical conflicts.
Southeast Asia is projected to become the world's fourth-largest economy by 2030, following the US, China and India, said Mr Charoenlarp.
BBL, Thailand's largest lender by total assets and a leader in international banking, supports both local and foreign investors expanding across the region.
The bank operates in 14 economies worldwide, with international banking contributing 25% of its total revenue.
BBL operates in nine of the 10 Asean nations, excluding Brunei, with its Indonesian operations generating the highest revenue share.
BBL strengthened its presence in Indonesia by acquiring PT Bank Permata in 2020, holding a 98.71% stake.
The bank provides financial services through 205 branches across Indonesia.
Despite the increasing trend of mergers and acquisitions in some Southeast Asian markets, BBL has no plans to acquire additional regional banks. Inorganic growth is not BBL's strategy, said Mr Charoenlarp.
Meanwhile, the bank scaled back its operations in China in response to the country's economic slowdown and heightened uncertainties stemming from geopolitical tensions.
"China is transitioning to a modern, high-value economy, which brings challenges that will take time to navigate," he said.
"BBL will align its international banking operations with each country's economic cycle, while maintaining a strong risk management framework."
Despite short-term challenges, China's solid economic fundamentals and infrastructure will continue to present long-term growth opportunities for BBL, said Mr Charoenlarp.
Long-term investment remains a core strategy for the bank's international banking business, he said.