KBank sets target of 5-7% loan growth this year

Kasikornbank (KBank) aims to grow its lending by 5-7% and control the quality of its assets, with a non-performing loan (NPL) ratio target of less than 3.25%, according to its 2023 financial goals.

Kattiya Indaravijaya, chief executive of KBank, said in the bank’s statement the Thai economic recovery in 2023 would gain traction from last year. Thai GDP is expected to grow by 3.7% this year, driven mainly by tourism following China’s reopening.

She said tourist arrivals are unlikely to reach pre-pandemic levels until 2024, while there is a lingering risk from slowing exports as advanced economies slip into recession.

The bank predicts the Thai economy will have an uneven or “K-shaped” recovery as improvements vary across businesses amid persistently high operating costs, such as rising wages and interest rates, as well as high household debt, Ms Kattiya said.

The…