KBank Forecasts Stronger 2027 Economy on Investment Drive
Kasikornbank projects Thailand's economy will strengthen in 2027 if public and private investment accelerates, driven by foreign inflows into data centers, EVs, and electronics. The bank's nine-month fee income jumped 16% as it deploys AI and partner data to expand lending to underserved businesses while targeting seven strategic industries under the government's Reinvent Thailand policy.
Kasikornbank (KBank) assesses that Thailand's economy in 2027 has an opportunity to grow better than this year if government and private investment proceed at full force, riding a wave of foreign direct investment in data centers, EVs, and electronics that could drive corporate lending growth of 7%, while the bank upgrades AI and data to expand fee income — which grew 16% in the first nine months.
KBank CEO Kattiya Indaravijaya stated that Thailand's economy in 2026 remains in a fragile recovery amid global economic uncertainty, geopolitical conflicts, trade policy shifts, and domestic structural constraints including household debt and business competitiveness challenges. However, the 2027 outlook improves if investment momentum from both sectors materializes and sustains.
Against this backdrop, the bank continues its "3+1 & P" strategy, focusing on core business strength, creating new fee and innovation revenue streams, leveraging AI and data to elevate services, and opening lending opportunities in high-potential business groups alongside comprehensive risk management — emphasizing quality growth over mere loan expansion.
The bank reaffirmed its non-performing loan management remains within the full-year target of 140-160 billion baht, with nine-month results tracking at the upper end of the range. Fee income shows strong growth at around 16% for the first nine months, though the bank maintains its original guidance due to quarterly variability and seasonal fourth-quarter expense patterns.
Return on equity (ROE) currently stands at 9.31%, with a long-term goal of returning to double digits, contingent on Thailand's economic recovery. "We don't just look at profit growth but at delivering appropriate returns to shareholders alongside it. We believe the potential and readiness are there; we're just waiting for the economic timing to return and expand business opportunities," Kattiya said.
On business sector support, the bank continues serving all customer groups but prioritizes seven target industries under the government's "Reinvent Thailand" policy — sectors positioned to benefit from national development direction. The key aim is to help high-potential businesses boost productivity and competitiveness to jointly propel Thailand out of the middle-income trap within 12 years.
Kattiya added that for expanding lending to new customer segments, the bank is piloting small-scale loan products to assess risk before scaling, using data from business partners such as LINE BK and supply chain information — covering payment behavior, delivery performance, product quality, and returns — to evaluate entrepreneurs who lack traditional credit histories.
