Mr. Payong Srivanich, President and Chief Executive Officer of Krungthai Bank Public Company Limited (SET: KTB or Krungthai), stated that the bank’s overall business operations in 2026 will continue in line with the direction of the Thai economy.
The country’s gross domestic product (GDP) growth rate in 2026 is expected to be between 1.5 -1.8%. Given this limited economic expansion, the bank must urgently adjust its strategies and seek out new growth curves to maintain its competitiveness and ensure long-term, continuous business growth.
At the same time, the bank remains focused on extending loans to existing business groups and customers who demonstrate ongoing growth potential. Krungthai is also supporting and assisting retail clients still facing high levels of household debt, emphasizing its role as an efficient funding source to address spending needs and reduce customers’ financial burdens in the long run.
Mr. Payong stated that, for this year’s management of non-performing loans (NPL), the bank aims to keep them within its targeted framework. Currently, Krungthai is in the process of establishing a joint venture with an asset management company (JV-AMC), expected to launch in early 2026.
The establishment still requires several procedural steps and approvals, particularly from the Bank of Thailand (BoT), but he is confident that having a JV-AMC will systematically improve effectiveness in managing and resolving NPL issues.
Regarding the bank’s share buyback plan, already approved by the shareholders’ meeting in 2025, implementation will depend mainly on the appropriateness of “market conditions” and “situational factors.” The bank has various capital management approaches, including “dividend payments” and “share buybacks,” to generate suitable long-term returns for shareholders.
In the case of the bank’s holding in Thai Airways International Public Company Limited (SET: THAI), Krungthai will assess its investment based on fundamentals, evaluating the company’s ability to operate independently alongside a medium- to long-term assessment of overall investment.
As Chairman of the Thai Bankers’ Association, Mr. Payong noted that in 2025, Thailand’s economy faced a depreciating US dollar, leading to the baht’s appreciation and affecting the country’s export competitiveness.
Therefore, the main issue is to ensure the baht does not appreciate significantly or to a level higher than trading partners, especially its leading competitors, as excessive baht appreciation raises Thai exporters’ trade costs through decreased competitiveness.
Factors contributing to the baht’s appreciation recently are largely linked to two main transactions: gold trading and digital asset trading. Comprehensive and interconnected information on these transactions is needed for systematic oversight.
Regulators are actively handling and monitoring this matter, as its repercussions directly affect the real sector and a wide spectrum of Thai entrepreneurs.
