Mr. Arthid Nanthawithaya, Chief Executive Officer and Director of SCB X Public Company Limited (SET: SCB), stated at the Thailand Economic Outlook 2026 “Out of The Trap” event, organized by Bangkok Biz News, under the topic “Structural Reform: The Survival Path for Sustainable Thai Economic Growth.”
He stated that the SCBX Group continues to drive the organization forward with technology in all dimensions to enhance competitiveness and continuously reduce the group’s financial costs. Over the past 2-3 years, SCBX has adjusted its cost structure by introducing new technology and innovation to enhance organizational processes for greater efficiency.
The SCBX Group also sees many more opportunities to use critical technology to further reduce financial costs, as well as to improve the business performance of subsidiaries to generate revenue and maintain sustainable growth without interruption. This technological integration is not only aimed at cost reduction but also lays the foundation for the group’s long-term business sustainability.
Mr. Arthid stated that “even though we are adopting more technology, SCBX does not need to increase investment budget in this area, as today’s technology—especially innovation in artificial intelligence (AI)—is far more efficient at lower costs. This allows us to apply it beneficially in various areas, such as management, data analytics, and precise development of customer-driven products.”
He further noted that, under economic conditions that have not fully recovered, a major challenge for the private sector lies ahead. Preparing and adapting swiftly to technology is a crucial factor in survival and future growth, especially for entrepreneurs who may be exposed to greater risk than those investing in technology if they are slow to adapt.
KBank Expands Internationally
Ms. Kattiya Indaravijaya, CEO of Kasikornbank PCL (SET: KBANK), stated that the bank continues to expand its international business, particularly in Vietnam, which is a high-potential market with strong (GDP) economic growth, providing substantial future opportunities for expanding the customer base and business development.
KBANK’s new approach in the Vietnamese market will shift from large-scale investments, such as joint ventures or acquisitions as done in the past, to lower-cost strategies—for example, digital loan business expansion, credit cards, and online financial services—to reach customers more effectively and drive sustainable growth.
Moreover, the bank continues to focus on generating fee-based income (Non-Interest Income) from various transaction types, including wealth management, mutual funds, and life and non-life insurance, to strengthen long-term revenue and reduce dependency on interest income alone.
TTB Addresses Debt Crisis
Mr. Piti Tantakasem, Chief Executive Officer of TMBThanachart Bank PCL (SET: TTB), stated that Thailand’s current debt crisis stems from three major “walls”: the retirement wall at age 60 with no income (9%), the non-performing loan wall (20%), and the insufficient income wall leading to excessive borrowing (31%). Meanwhile, 40% of the population is at risk of facing all three walls simultaneously. “Getting the first button right” means solving small-scale non-performing loans under THB 100,000, which accounts for 70% of total bad debt. Promoting a credit scoring system for risk assessment and fair interest rate setting will help sustain the Thai economy.
The establishment of asset management companies (AMCs) to help small debtors recover is a crucial task the government should urgently undertake. Mr. Piti noted that the government’s economic team and the governor of the Bank of Thailand have a strong understanding of the financial system structure, but effective long-term solutions require a “collective effort” from both public and private sectors. Developing a credit scoring system will encourage financial discipline, helping individuals maintain their creditworthiness and obtain risk-appropriate interest rates.
Bualuang Securities Recommends Bank Stocks
Bualuang Securities stated that the Monetary Policy Committee (MPC) meeting on October 8, 2025, resolved to maintain the policy rate at 1.50% as the market expected. This decision did not significantly impact related stock price trends. Bank stocks rose slightly while finance sector stocks declined marginally.
As for investment strategies, the recommendation is to “accumulate bank group stocks” for trading in the current period, as share prices have adjusted into the “oversold” zone. The banking group tends to benefit indirectly from government measures such as the “Khon La Khrueng Plus” scheme and the establishment of AMCs to resolve non-performing loans.
Meanwhile, the Bank of Thailand’s policy rate holds at 1.5%, aligning with the period preceding third-quarter earnings expectations—some banks may post special profits from investments in Thai Airways International PCL (SET: THAI), such as Krungthai Bank PCL (SET: KTB) and Bangkok Bank PCL (SET: BBL).
Currently, KTB offers the best value among banks with a 2026 PER of 8.8 times, below the group’s average of 9.9 times. The 2026 P/BV stands at 0.7 times, and ROE at 8.2%, resulting in a P/BV/ROE of 0.087, below the group average of 0.098. Simultaneously, KTB is expected to deliver a dividend yield of around 6.7% in 2025 and 2026, being the only bank in the group to pay dividends once a year—making its dividend yield the highest among recommended bank stocks for the second half of 2025.
