Kasikornbank (KBank) is focusing on expanding its international banking business this year in Vietnam and Indonesia based on the high growth potential of the two Asean economies.
The bank's international business is called World Business Group (WBG).
Vietnam and Indonesia are expected to post strong economic growth compared with their regional peers, said KBank chief executive Kattiya Indaravijaya.
The World Bank forecasts long-term Thai GDP growth of 3%.
The regional expansion is expected to facilitate the bank's business growth as Thai companies have branched out to regional markets. The bank will assist customers in growing their business opportunities, she said.
Apart from Vietnam and Indonesia, KBank continues to focus on China, monitoring the nation's economic situation to ensure prudent expansion, said Ms Kattiya.
KBank, Thailand's second-largest lender by total assets, is growing WBG under the Asean Economic Community +3 strategy, which includes Japan, China and South Korea.
In November 2023, KBank China opened a new branch in Beijing, its fifth office in the country, aiming to strengthen regional service capabilities.
Indonesia is another high-potential market with a population of 270 million, the most populous nation in Southeast Asia, as KBank is eager to advance its operations there, she said.
At the end of 2022, the bank increased its total shareholding in Bank Maspion to 84.55%, making KBank the controlling shareholder.
KBank wants to combine its long-term experience in digital banking with Bank Maspion's local expertise to give the Indonesian company a top 20 lending portfolio in the country by 2027, said Ms Kattiya.
For KBank Vietnam, the goal is to be among the top 20 banks by asset size in the market by 2027 following a branch opening in Ho Chi Minh City in August 2022. Digital banking is a key strategy for growing business in this market, she said.
Around 1.3 million people use its mobile banking app, K-Plus, in Vietnam.
Ms Kattiya said WBG should support the bank's growth this year, with the international business segment contributing greater income.
The bank is scheduled to announce its 2024 business direction soon, she said.
For the first nine months of 2023, the bank's WBG loans tallied 107 billion baht, an increase of 30.1% year-to-date and 63.9% year-on-year.
As of September 2023, the bank's total loan portfolio amounted to 2.49 trillion baht, according to KBank's data.
Ms Kattiya said the bank plans to grow WBG via three key strategies: physical presence, digital platforms and regional partnerships.
KBank also wants to pursue inorganic growth through mergers and acquisitions, in line with business opportunities, she said.
KBank has a presence in China, Japan, Vietnam, Indonesia, Cambodia, Myanmar and Laos.
For the digital platform, the bank provides cross-border multi-currency settlement, cross-border baht direct settlement and cross-border retail payment.
Moreover, KBank partners with 80 banks in 14 countries.