Retail News CRM

Tag: Bangkok Bank

  • Bangkok Bank Says Absence of Virtual Bank License Isn’t a Major Setback for Growth Plans

    Bangkok Bank Says Absence of Virtual Bank License Isn’t a Major Setback for Growth Plans

    The future of virtual banking in Thailand appears to be a slow burn, as Bangkok Bank’s prospects in this emerging sector suggest limited revenue potential in the near term. According to CGS International’s analyst briefing held on July 23, 2025, the investment house assesses that significant business revenue from virtual banking is unlikely to materialize within the initial five years of operation.

    Virtual Banking License not a Major Concern

    In light of this outlook, CGS International asserts that Bangkok Bank’s absence of a virtual banking license will not pose a substantial problem for the institution. Their report, published on July 29, emphasizes that the current landscape of virtual banking in Thailand is still in its infancy, and immediate revenues from this venture are expected to be minimal.

    Steady Growth Targets Amid Caution

    This cautious approach comes as Bangkok Bank’s management maintains its financial targets for 2025, aiming for a loan growth of 3% to 4%. They also forecast a nonperforming loan (NPL) ratio of 3%, a net interest margin (NIM) of 2.8% to 2.9%, and modest low single-digit growth in net fee income, alongside credit costs projected between 0.9% and 1%.

    Potential Challenges on the Horizon

    However, CGS International warns of downside risks that could impact these targets, including negative loan growth, a lower-than-expected NIM due to potential policy rate cuts, reduced net fee income, and elevated credit costs. They noted that Bangkok Bank’s loan growth for Q2 2025 was a mere 0.7% from the end of 2024, and a subdued demand outlook is anticipated for the latter half of the year, particularly due to uncertainties surrounding the impact of U.S. tariffs on private investments. More rate cuts could further compress the bank’s NIM, leaving it to navigate treacherous waters ahead.

    Can Virtual Banks Make a Splash? We’ll See!

    While the virtual banking sector in Thailand may seem like a distant wave, observers are curious to see if any competitor can make a meaningful splash before the competition gets out to sea.

    Questions & Answers

    What is the expected revenue outlook for virtual banking in Thailand?
    The revenue generated by virtual banking in Thailand is anticipated to be minimal in the first five years, according to CGS International’s analysis.

    How is Bangkok Bank performing financially in 2025?
    Bangkok Bank is targeting a 3% to 4% loan growth, with a nonperforming loan ratio of 3% and a net interest margin between 2.8% and 2.9% for 2025, while facing potential economic headwinds.

    What risks could impact Bangkok Bank’s financial targets?
    Downside risks include negative loan growth, lower-than-expected net interest margins due to monetary policy adjustments, reduced net fee income, and elevated credit costs.

  • Bangkok Bank Set to Fall Short of 2025 Net Interest Margin Goals: What This Means for Investors

    Bangkok Bank Set to Fall Short of 2025 Net Interest Margin Goals: What This Means for Investors

    Bangkok Bank is bracing for a challenging financial landscape as it navigates potential interest rate cuts in the latter half of 2025. According to a recent report by UOB Kay Hian, the esteemed Thai bank is expected to fall short of its target net interest margin (NIM) as it faces the prospect of two rate reductions: a 25 basis point cut in October and another in December.

    A Daring Forecast Amid Rate Cuts

    While Bangkok Bank is forecasting that the December cut will hold its NIM steady above 2.8%, UOBKH analysts predict a dip, projecting the ratio to settle at approximately 2.7% by year-end. For context, the NIM reflects the net interest income from loans after accounting for interest paid to depositors, a crucial metric for banks in assessing profitability.

    A Mixed Bag of Earnings Results

    In its latest financial report, the bank announced a flat year-on-year earnings result for Q2 2025, logging THB11.8 billion—a figure that was also down by 6% compared to the previous quarter. Surprisingly, this outcome beat UOBKH’s estimates, offering a glimmer of hope amid the forecasted challenges. Corporate loans stood as the sole bright spot in an otherwise stagnant loan growth landscape, revealing a complex interplay of sectors within Bangkok Bank’s operations.

    Non-Interest Income Shows Resilience

    On a more upbeat note, the bank’s non-interest income surged by 22% year-on-year to THB12.7 billion. However, it did experience an 8% decline quarter-on-quarter, illustrating the pressure on various income streams. Adding to the caution, credit costs and the nonperforming loan (NPL) ratio registered an uptick in the second quarter, compelling Bangkok Bank to set aside THB10.7 billion in provisions.

    Looking Ahead With Caution

    UOBKH analyst Thanawat Thangchadakorn expressed a cautious outlook on the rising NPL trend, suggesting it might mirror last year’s patterns. Although Bangkok Bank maintains its credit cost target at 1% for 2025, it acknowledges the possibility of exceeding this level, estimating a year-end credit cost of approximately 137 basis points. As the bank charts its course through an uncertain financial environment, all eyes will be on its ability to adapt and navigate these impending challenges.

    Questions & Answers

    What interest rate cuts is Bangkok Bank anticipating for late 2025?
    Bangkok Bank is expecting two rate cuts in the final months of 2025, specifically a 25 basis point cut in October and another in December.

    How did Bangkok Bank’s earnings perform in Q2 2025 compared to expectations?
    The bank reported a flat earnings outcome of THB11.8 billion for Q2 2025, surpassing UOBKH’s estimates despite being 6% lower than the previous quarter.

    What challenges is Bangkok Bank facing regarding its nonperforming loans?
    Bangkok Bank is experiencing an increase in nonperforming loans, prompting it to set aside THB10.7 billion in provisions to address this issue, aligning with a trend seen in the previous year.

  • Bangkok Bank Launches Paybooc QR Payments: A New Era for Cashless Transactions in Thailand

    Bangkok Bank Launches Paybooc QR Payments: A New Era for Cashless Transactions in Thailand

    Korean travelers are set to revolutionize their payment experiences in Thailand, thanks to an innovative collaboration between Bangkok Bank and BC Card, a prominent South Korean payment service provider. The launch of cross-border QR payments through the Paybooc app allows South Koreans to shop and pay with ease while exploring all that Thailand has to offer, utilizing real-time exchange rates for transactions.

    A Gateway for Seamless Travel Peering into 2025

    This partnership does not just stop at providing convenience for travelers from South Korea; it also aims to create a reciprocal system. Soon, Thai customers will be able to scan QR codes in South Korea, making cross-border transactions as effortless as a stroll down a busy street. “It’s like carrying a magic wallet that opens doors in another country,” said one industry insider, capturing the essence of this technology.

    Tourism Expectations and Economic Impact

    Looking ahead, the tourism landscape is set to flourish, with projections estimating around 2 million South Korean tourists will visit Thailand in 2025, according to Chaiyarit, the senior executive vice president at Bangkok Bank. Thai tourists, known for their high spending patterns—averaging THB59,000 per trip—will greatly benefit from the Cross-Border QR Payment service, further boosting the economies of both nations.

    Expanding Horizons—Bangkok Bank’s Wide Reach

    Bangkok Bank is not just focusing on these two markets; it currently operates QR payment services across eight markets, including Vietnam, Indonesia, Malaysia, Singapore, Laos, Hong Kong, South Korea, and Cambodia (inbound service only). This extensive network positions the bank to facilitate seamless transactions and enhance the travel experience for its customers.

    Bridging Borders with Technology

    The integration of QR payment technology not only streamlines financial transactions for tourists but also represents a significant step toward fostering stronger economic ties between South Korea and Thailand. As digital payment options continue to evolve, the two nations are positioning themselves at the forefront of a new era for global travel, where currency exchange headaches may soon become a relic of the past.

    Questions & Answers

    How does the new QR payment system work for South Korean travelers?
    Travelers utilizing the Paybooc app can instantly make QR payments in Thailand at real-time exchange rates.

    What future plans do Bangkok Bank and BC Card have for the QR payment system?
    They plan to allow Thai customers to scan and pay in South Korea, enhancing cross-border financial interactions.

    Why is the influx of South Korean tourists significant for Thailand’s economy?
    With projections of 2 million South Korean visitors by 2025 and their high average expenditure, these tourists are poised to significantly boost Thailand’s tourism revenue.

  • Thailand’s Largest Bank Takes Bold Step: Foreign Tourists Unable to Open Accounts Amid Fraud Crackdown

    Thailand’s Largest Bank Takes Bold Step: Foreign Tourists Unable to Open Accounts Amid Fraud Crackdown

    In a significant policy shift, Bangkok Bank, Thailand’s largest bank by assets, has halted account openings for certain foreign customers without long-term residency. This move is a part of a broader crackdown on fraud that could impact visitors and some expatriates.

    Tightened Restrictions

    The bank’s updated policy also limits access to credit card services and mobile banking for individuals who do not meet the newly established eligibility criteria. “Customers flagged as suspicious under regulatory guidelines are required to undergo identity verification,” the bank stated, as reported by the Bangkok Post.

    Impact on Foreign Nationals

    The effects of this policy shift are already being felt, as numerous foreigners have taken to social media to express their frustrations over frozen accounts and blocked cards. The Bangkok Community Help Foundation has also received several similar reports.

    Exceptions to the Rule

    According to the Russian state news agency TASS, a spokesperson for Bangkok Bank confirmed that tourists are now ineligible to open accounts, though exceptions are made for foreigners with Thai spouses, property ownership, or long-term visa status. “An account with Bangkok Bank can be opened by foreigners present in the country under retirement or non-immigrant visas,” the spokesperson clarified.

    Seeking Assistance

    Customers navigating account issues or looking for further clarification are encouraged to reach out to Bangkok Bank through its official support channels. After all, even banks need a little TLC from their customers!

    Questions & Answers

    What prompted Bangkok Bank to implement this new policy?
    Bangkok Bank is cracking down on fraud, leading to a restriction on account openings for foreign customers without long-term residency.

    Who is still eligible to open an account at Bangkok Bank?
    Foreigners with Thai spouses, property ownership, or long-term visa status, including retirement or non-immigrant visas, can still open accounts.

    How can affected customers get assistance?
    Customers facing issues with their accounts should contact Bangkok Bank through its official support channels for help.

  • R3, Enterprise Blockchain Provider Announces Expansion in Thailand with Bangkok Bank

    R3, Enterprise Blockchain Provider Announces Expansion in Thailand with Bangkok Bank

    R3, the enterprise blockchain software firm, will expand its presence in Thailand following the renewal of its partnership with Bangkok Bank. The expansion will see an increase in R3’s workforce in Thailand, underscoring R3’s commitment to the Thai market and its local partners. 

    “Thai enterprises are at the forefront of innovation, digital transformation and blockchain adoption and R3 is proud to support the nation’s digital industry transformation,” said Amit Ghosh, Head of APAC, R3. “We’ve had a long standing relationship with Bangkok Bank and collaborated with various large-scale blockchain projects, including Project Inthanon-Lionrock and Contour—as such, we are excited to continue our partnership with Bangkok Bank and to support their ongoing commitment to improving their service offering through the use of emerging technologies.”

    Highlighting R3’s commitment to the Thai market and local partners, the partnership renewal with Bangkok Bank coincides with R3’s recent expansion of its local workforce—consisting of in-market sales and pre-sales roles in Thailand. 

    “As we see new opportunities and innovations coming from Thailand, and as we continue to work with some of the Thai ecosystem’s largest actors—we want to ensure that we have the appropriate resources in place to continue providing our partners with transformative tools to meaningfully improve their business. The partnership renewal with Bangkok Bank, together with our recent in-market hires, demonstrates R3’s commitment to support our current and future partners in Thailand,” Ghosh added.

    Through its partnership with R3, Bangkok Bank will have the ability to leverage R3’s flagship enterprise blockchain platform, Corda Enterprise, to streamline business operations across its trade finance, capital markets, and supply chain businesses. Bangkok Bank is also planning to ramp up Corda training for their internal teams and is exploring new Corda-based solutions within the trade, payments and supply chain space. 

    “It is almost five years since we first met with Dave Rutter and his leadership team in New York. At that time we were impressed by their open minded and collaborative approach to developing the potential of distributed ledger technologies. The decision to develop Corda as a DLT solution to meet the requirements of financial services was visionary. In 2021 we are seeing growing interest from our corporate clients in deploying enterprise blockchain solutions tailored to their industry-specific needs,” said Ian Guy Gillard, Senior Executive Vice President at Bangkok Bank and R3 board advisor. “Consequently, we have renewed our annual subscription of Corda Enterprise for the full licensing plan. We are also delighted that R3 has shown their confidence in the Thai market by adding presence on the ground with the local office. This is even more important in uncertain times such as this when travel is restricted,” Gillard added.

    Bangkok Bank has cemented itself as a leader in blockchain innovation and is a founding member of Contour, a blockchain-based open industry platform to create, exchange, approve, and issue Letters of Credit L/C on Corda. In September 2020, Bangkok Bank used Contour to facilitate an L/C transaction between a subsidiary of Thailand-based PTT Group and a Vietnam-based trading partner in September 2020, greatly reducing L/C issuance time by over 95%. The most recent success extends the bank’s collaboration with leading local and global partners in the ecosystem. The bank collaborated with SCG Chemicals, a manufacturer of petrochemical products and GC Marketing Solutions Limited, the chemical flagship of PTT Group under GC Group, to facilitate their L/C transactions with their partners via leading local banks in Vietnam. The bank also joined with Pacific Containerbag Co., Ltd. to facilitate the company’s transactions with corporate partners in Oman, opening and receiving L/C, supporting both import and export customers. Bangkok Bank has plans to go-live with Contour and implement L/C transactions under the Contour network within its ecosystem.

  • Bangkok Bank seeks nod to grant more loans in Vietnam

    Bangkok Bank seeks nod to grant more loans in Vietnam

    The Vietnamese branch of Bangkok Bank has sought permission to lend more as it nears the 15 percent annual growth limit.

    Tharabodee Serng-Adichaiwit, senior vice-president and general manager of the Vietnamese branch, said the bank has adjusted its lending growth target to 30 percent by the end of this year, after it already reached 13 percent in the first six months.

    The report stated, rapid, steady economic growth of neighboring countries has made the Thai bank’s loan outlook for the upcoming months promising.

    The 15 percent loan growth cap by Vietnam’s central bank applies to both local and foreign banks. The credit growth limit was introduced last year to better regulate inflation, exchange rate, and interest rates.

    However, institutions can submit a request form to exceed this threshold and the regulator will determine this on a case-by-case basis.

    Other banks have also sent their requests to boost credit growth by more than 15 percent, Tharabodee said.

    Vietnam’s economy has sustained and built on last year’s gains with an impressive 7.08 percent growth in the first half of 2018, the highest rate since 2011.

    The World Bank had forecast in a recent report that Vietnam’s economy could expand by 6.8 percent in 2018, revising upwards its previous estimate of 6.5 percent. It has estimated the nation’s GDP growth at 6.6 percent in 2019 and 6.5 percent in 2020.

    Lees ook:

    Lees ook:

  • AEON and Bangkok Bank jointly offer gold and iPhone 8 to lucky customers

    AEON and Bangkok Bank jointly offer gold and iPhone 8 to lucky customers

    Mr. Nuntawat Chotvijit (Right), Marketing Director of AEON Thana Sinsap (Thailand) Public Company Limited, together with Ms. Prassanee Ouiyamaphan (2nd from Right), Executive Vice President of Bangkok Bank announced a campaign “Get Prizes with AEON Your Cash”. Get a chance to win, worth a total of 745,000 Baht, include a gold bar worth 400,000 Baht and 10 prizes of iPhone 8 256GBs. AEON Your Cash cardholders are eligible to participate in the campaign by making cash withdrawals at least 1,000 Baht per sales slip at Bualuang ATMs Bangkok Bank during 1 April – 31 May 2018.

  • Bangkok Bank provides Bt2-bn funding for VPI particle board plant

    Bangkok Bank provides Bt2-bn funding for VPI particle board plant

    Bangkok Bank has approved a credit line of Bt2 billion to Vanachai Panel Industries (VPI) for construction of a particle-board factory in Surat Thani, known as the PB-3 project.

    VPI needs the new plant in order to increase its capacity to produce high-quality and environmentally-friendly board that meets the needs of customers in its major markets in East Asia and Asean.

    Bangkok Bank senior executive vice president Chansak Fuangfu on Tuesday said the bank was pleased to support the success of Vanachai Group (VNG), a leader in the production and distribution of environmentally friendly panels, with a credit line of Bt2 billion to its subsidiary VPI for construction of the PB-3 factory.

    The funds will be used to increase annual production capacity by 450,000 cubic metres to meet demand from East Asia and Asean.

    Given the good growth of the company, its stable financial status, and long partnership with Bangkok Bank, the bank is ready to fully support VNG in its international expansion, Chansak said.

    VPI managing director Wanthana Jaroennawarat said that with the new Bt2-billion investment, the company aimed to complete construction of the PB-3 project and commence commercial production in the second quarter of 2019.

    The investment will enable the company to double its annual particle-board production capacity to 900,000 cubic metres using an efficient and environmentally friendly production process, he added.

    Lees ook: