Thailand’s second-largest financial institution, Kasikornbank Pcl, has withdrawn its commitment to a major profitability objective due to growing concerns over the nation’s weakening economic conditions. The bank now anticipates that loan growth will remain subdued while the risk of borrower defaults rises. n nChief Executive Officer Kattiya Indaravijaya stated in a Bangkok interview on Monday that achieving the previously communicated goal of raising return on equity to a minimum of 10% by the end of 2026 is no longer feasible. She explained that the lender is adopting a significantly more cautious approach to operations, citing multiple challenges including US-imposed tariffs, ongoing border tensions, and domestic political uncertainty as key factors affecting the economic outlook. n
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Kasikornbank Ditches Key Profit Goal as Thai Economy Falters
Thailand’s second-largest lender Kasikornbank Pcl abandoned a key earnings target on concerns that the already weak economy may deteriorate further, denting loan demand and increasing defaults. n nThe commercial lender is unlikely to fulfill the pledge it made to investors to increase return on equity to at least 10% by the end of 2026, according to Chief Executive Officer Kattiya Indaravijaya . The bank is exercising “much more prudent” business practices as the local economy has to grapple with US tariffs, border dispute and political instability, she said in an interview in Bangkok on Monday.