Phillip Securities (Thailand) is bullish on Krung Thai Bank and SCB X following the announcement from the Bank of Thailand, rewarding three ventures with virtual bank licenses that also includes the two commercial banks.
The Bank of Thailand (BoT) has announced three successful applicants to establish virtual banks. They are:
1) ACM Holding Co (CP + Alibaba)
2) A partnership between KTB, ADVANC, and OR
3) A partnership between SCB, WeTechnology Limited, and KakaoBank Corp.
The approved applicants must now form public limited companies and comply with specific conditions set by the Finance Ministry. They will also be required to undergo a readiness assessment by the BoT before they can apply for a final operating license. They must commence their operations within one year of receiving approval from the Finance Ministry (June 19, 2025).
Phillip estimates that the establishment of new companies will not affect KTB and SCB’s performance in FY25. While their virtual bank businesses—set to commence in FY26—may incur losses in the initial phase, the losses are unlikely to be significant. Being selected to operate virtual banks, KTB and SCB could receive positive sentiment as they explore new business frontiers.
Additionally, Phillip maintains its profit projections and target prices for both banks. The firm recommends an ‘ACCUMULATE’ on KTB, with a target price of Bt22.50 per share, and a ‘BUY’ on SCB, with a target price of Bt124.00 per share.
