Despite murky economic prospects for the second half, large local banks are sticking to their business plans in the hope that the new government will support budget disbursement and domestic investment.
Kasikornbank (KBank) targets loan growth of 5-7% this year and credit cost of 165 basis points, remaining unchanged, said president Predee Daochai.
Economic uncertainties are expected to loom large in the latter half, mainly because of trade disputes between the US and China, he said. External risk is a key factor that could deter exports and GDP growth this year.
"The bank may cut its GDP growth forecast for this year marginally. The revision would not have a significant impact on the bank's overall business plan this year," said Mr Predee.
KBank plans to rejig some business strategies in line with economic realities, he said.
KBank, the country's second largest bank by assets, would prioritise some business areas to maintain total loan expansion and revenue this year.
Mr Predee said the domestic economic outlook is expected to improve in the second half after a new government is installed.
A clearer political picture would build up confidence, while fiscal budget disbursement would support domestic investment, he said.
Roong Poshyananda Mallikamas, senior executive vice-president of Krungthai Bank (KTB), said the bank would keep the loan growth target this year at 5% despite signs of a slower growth rate.
KTB's 2019 business strategy is concentrated on digital banking.
The bank will continue to monitor asset quality amid global uncertainties, she said.
Despite higher external uncertainties, the domestic economy's future has become clearer following the new government formation, Mrs Roong said. Fiscal budget disbursement should support domestic investment, she said.
Arak Sutivong, president of Siam Commercial Bank (SCB), said the bank would not revise its business plan this year.
SCB is maintaining a loan growth target of 5-7% this year, but it expects to finish around the low end of that range, he said.
The threat from the Sino-US trade brawl has become larger than predicted, said Mr Arak.
"The private sector typically has high potential to do business and handle uncertainties. There is no need for the bank to tweak its business plan," he said.
SCB also maintains its credit cost target for this year at 115-135 basis points.