Retail News CRM

Tag: Krung Thai Bank

  • Thailand Unveils Three Winning Bids for Exciting New Virtual Banks!

    Thailand Unveils Three Winning Bids for Exciting New Virtual Banks!

    In a significant move for Thailand’s financial landscape, the Bank of Thailand (BOT) has approved three applicants to launch virtual banks. This recent development heralds a new era of banking innovation as the country shifts towards digitalization.

    Meet the New Players in Thailand’s Banking Scene

    The approved entities include AMC Holding Company Limited; a consortium made up of Krung Thai Bank, Advanced Info Service, and PTT Oil and Retail Business Public Company Limited; and another group featuring SCB X, WeTechnology Limited, and Kakaobank Corp.

    Leading the charge is SCB X, the parent company of Siam Commercial Bank (SCB), the oldest bank in Thailand. Alongside them, KakaoBank, a thriving digital bank from South Korea, and WeTechnology, the Hong Kong arm of WeBank—the first digital bank in China—are set to make waves.

    Partnerships That Spark Change

    The consortium formed by Krung Thai Bank—a state-owned institution—teams up with Advanced Info Service, Thailand’s largest mobile operator, and PTT Oil, a key state-owned oil and gas player. This diverse mix signals a push towards integrating financial services with existing consumer bases and technology.

    Countdown to Launch: June 2026

    The clock is ticking for these virtual banks, which must commence operations within one year following the Thai Finance Minister’s approval on June 19, 2025. The BOT emphasizes that these companies need to structure themselves as public limited entities and successfully undergo assessments to qualify for their banking licenses.

    Setting a New Standard in Banking

    As part of their qualification process, the BOT and the Ministry of Finance will evaluate each applicant’s business strategy and capacity to introduce “new value propositions” to financial services. The aim is clear: enhance existing processes and deliver improved service via digital channels—the bank of the future is just around the corner!

    So, who’s excited about virtual banks in Thailand? These innovative players are sure to shake up the status quo in banking. Who knows, maybe your next transaction will involve a banking chatbot powered by AI!

    Questions & Answers

    What is the deadline for the new virtual banks to begin operations? They are required to start business operations by June 2026.

    Who are the approved applicants for virtual banking in Thailand? The BOT has approved AMC Holding Company Limited, a consortium including Krung Thai Bank, Advanced Info Service, and PTT Oil, as well as a group consisting of SCB X, WeTechnology Limited, and Kakaobank Corp.

    What must applicants demonstrate to qualify for a virtual bank license? Applicants must showcase their business plans and ability to deliver innovative financial services that improve efficiency through digital channels.

  • Japanese stores target Thai tourists

    Japanese stores target Thai tourists

    Thai tourists are now in the sights of Japanese department stores after their success in luring Chinese during Lunar New Year.

    Such companies as Isetan Mitsukoshi Holdings and J.Front Retailing, which run the Daimaru and Matsuzakaya department stores, are ramping up efforts to lure Thai tourists during their traditional New Year holiday Songkran, which this year runs from April 13 to 15, reports Nikkei Asian Review.

    A weaker yen has helped boost tourism numbers to Japan, and visitors from Thailand have grown steadily to nearly 800,000 last year following the relaxing of visa requirements in July 2013.

    While most foreign visitors last year came from China, they were followed in volume by South Korea, Taiwan, Hong Kong, the US and then Thailand.

    Isetan Mitsukoshi and J.Front issued pamphlets and other materials to promote their Japanese stores during the Thai International Travel Fair at the Queen Sirikit National Convention Center on February 21, one of Southeast Asia’s largest travel-industry events. They mainly targeted Thai travel agencies.

    J.Front’s Daimaru and Matsuzakaya stores distributed flyers with discount coupons, and also plans to hand them out aboard Asia Atlantic Airlines flights between Thailand and Sapporo. The coupons will also be given to tourists buying the Japan Rail Pass at Thai outlets of Japanese travel agency HIS.

    Daimaru’s store in Sapporo has even prepared a floor guide in Thai language.
    Matsuya, another Japanese department-store chain, will give preferential treatment to customers of three Thai banks – Bank of Ayudhya, Kasikornbank and Krung Thai Bank – at its Ginza store in Tokyo. They will receive discounts and gifts.

    In January, Matsuya had a similar offer for customers holding membership cards from Thai retailer The Mall Group. Sales of duty-free goods at Matsuya during last year’s Songkran holidays surged 50 per cent from a year earlier, the company says.
    Visitors from Thailand spent a total of Y120 billion (US$1 billion) in Japan last year, up a quarter on 2014’s figures, according to a survey by the Japan Tourism Agency.

  • Krung Thai Bank makes profit

    Krung Thai Bank makes profit

    KTB posted 3Q15 earnings of Bt5.3bn, plunging 42% YoY and 37% QoQ. The result was 11% below our forecast but 4% below the Bloomberg consensus. This was attributable to bigger loan-loss provisioning (LLP) than was modeled. KTB set its 3Q15 LLP of Bt10.5bn against our numbers of Bt8.5bn. Pre-provision operating profit was Bt17bn, up 21% YoY but down 1% QoQ. The 9M15 earnings represent 90% of our FY15 earnings projection.

    Results highlights

    Lending was up 0.2% QoQ and 1.6% YTD—in line with our forecast. NIM for the quarter came in at 3.04%, up 3bps QoQ and 19bps, boosted by greater emphasis on the corporate and retail sectors and well managed funding cost from the previous quarter. LLP soared 270% YoY and 39% QoQ to Bt10.5bn (equaling credit cost of 2.1%). Note that the bank received a tax benefit of about Bt300m from troubled debt restructuring and extra LLP for Sahaviriya Steel Industry (SSI) in the quarter. Therefore, its corporate tax rate was down to 15% in 3Q15 from 18% in the same period last year.

    KTB’s NPL/loan ratio rose to 4.03% at end-September from 2.96% three months earlier (from SSI, and the small SME and retail sectors). Likewise, its loan-loss-coverage ratio dipped to 103% in 3Q15 from 125% last quarter. Fee income inched up 41% YoY and 12% QoQ to Bt7.3bn in 3Q15. OPEX was Bt12.2bn, an increase of 19% YoY but down 1% QoQ. KTB’s 3Q15 cost/income ratio was 44.2%, close to last quarter and down from the 45.6% reached in the same period last year.