Best bank: Kasikornbank
Kasikornbank (KBank) receives the award for Thailand’s best bank in in recognition of its commitment to enhancing asset quality in a challenging market and its dedication to sustainability initiatives.
Despite setting aside a Bt51.8 billion ($1.4 billion) provision for an expected high level of credit losses, KBank reported a net profit of Bt42.4 billion for 2023, an 18.6% year-on-year increase. The bank’s coverage ratio stood at a robust 152.2% at the end of December 2023.
Led by chief executive Kattiya Indaravijaya, KBank’s operating profit for 2023 reached Bt107.7 billion, a 9.3% rise over the previous year. This was primarily driven by an 11.6% increase in net interest income, despite slowing loan growth.
The bank’s focus on asset quality and improving credit underwriting processes for new loans resulted in a strong net interest margin of 3.66%. Non-interest income grew by 9.8% to Bt44.2 billion, mainly derived from gains on investments in global assets and increased revenue from trading and foreign exchange transactions.
KBank has established itself as the undisputed leader in Thailand’s sustainable financing space. The bank took steps to reduce its internal greenhouse gas emissions by 13% in 2023 compared to 2020, with the goal of achieving net zero by 2030. Moreover, KBank has spearheaded the country’s green financing and transition funding efforts, supporting Thai corporates in their decarbonization journey. A notable deal involved a Bt10 billion sustainability-linked loan to PTT Global Chemical Public Company last year, supporting the company’s goal of net zero greenhouse gas emissions by 2050.
Best investment bank: JPMorgan
JPMorgan takes the award for Thailand’s best investment bank in this year.
One of the most notable deals the firm worked on in the awards period was the $7.4 billion merger of Thai-listed telecom operators TRUE Corporation and Total Access Communications. This merger is expected to create the largest telecom operator in Thailand.
JPMorgan also led Bangchak Corporation’s $1.7 billion acquisition of a 65.9% stake in Esso Thailand from ExxonMobil. This acquisition aligns with Bangchak’s strategy to expand its footprint in the energy sector and enhance its refining and retail capabilities in Thailand, while also fitting with ExxonMobil’s strategy to streamline its portfolio and focus on core assets.
In the debt capital markets, JPMorgan acted as the joint bookrunner for Bangkok Bank’s $1.25 billion dual-tranche senior unsecured offering. On the equity side, JPMorgan acted as the joint placing agent on AEMH’s $240 million sell-down in Lotus Pharmaceutical in June 2023. This transaction increases the free float of Lotus Pharmaceuticals’ stock and diversifies its shareholder base with strong institutional investors.
Best international bank: HSBC
HSBC worked on several corporate and environmental, social and governance-related deals in Thailand in 2023. It also introduced new digital products and launched various corporate social responsibility projects in the country.
It acted as lead arranger on a $1.2 billion term loan for SCB X Public Company. It was sustainability coordinator and lead arranger on Thai Union’s $320 million sustainability-linked loan facility. It also arranged a €500 million sustainability-linked loan facility for Minor International PCL.
Digital products included PromptPay, a cross-border QR payment service; a new FX application programming interface that gives its clients automated access to wholesale FX rates; and the launch of HSBC SmartServe, its digital onboarding platform.
The bank contributed $77,000 to the Seub Nakasathien Foundation to increase food security, $28,600 to the Santisuk Foundation Scholarship to provide educational grants to 33 underprivileged youths and $14,200 to the Foundation of Environmental Preservation/WWF Thailand to support forest restoration and communities in Chiangmai and Nan Province.
Best digital bank: Kasikornbank
Kasikornbank’s digital solution, K Plus, grew its user base to 21.7 million users in 2023.
It launched a new merchant solution in 2023, K SHOP, an application that helps offline and online merchants to manage payment in a cashless way.
It also launched its KhunThong social chatbot, which reached 390,000 active monthly users from more than 1.7 million user accounts.
The bank’s new business payment solution, PromptBiz, is designed for cross-border fund transfers to the key markets for small business customers. It also launched a new K Corp application programming interface to capture enterprise level e-payment market share.
The bank adopted a QR payment system that works in more than 40 countries and an e-donation capability on K Plus market that allows for instant tax deductions.
Best bank for SMEs: Siam Commercial Bank
Siam Commercial Bank launched new digital services for small and medium-sized enterprises in 2023, along with a wide range of workshops and training programmes. The bank’s revenue from the segment grew by 5% year on year.
Workshops included Innovative Woman Enterprise a business programme that empowers women and innovation-based organizations. It also runs a programme for SMEs in the manufacturing sector, called Digital Smart Manufacturing, to help these firms boost efficiency and productivity and Sustainable Growth for Exporters, a programme focusing on sustainable growth.
Siam Commercial Bank also launched new digital solutions including its Business Anywhere, Digital LG, Business Net and FX Online services.
Best bank for ESG: Bank of Ayudhya
Bank of Ayudhya worked on several environmental, social and governance-related transactions in 2023. These included a $400 million green and blue bond to support climate action and sustain ocean health; $50 million of the proceeds will go towards extending loans for eligible blue assets, such as water supply, fisheries and aquaculture. The remainder will go toward financing eligible green assets, such as retail electric vehicles.
It also worked on a Bt3.5 billion ($96.3 million) green bond issue with EXIM Thailand, BEM’s Bt6.5 billion sustainability debentures issue, Gulf Energy Development’s Bt20 billion debentures issue and a Bt11.5 billion sustainability-linked loan to Thai Union.
The bank has collaborated with MUFG to offer structured trade finance products to customers in the energy and utilities and food and beverage sectors.
Best bank for corporate responsibility: UOB
UOB launched initiatives across Thailand in 2023 to enhance education and youth and social development.
The bank raised Bt4 million ($110,000) to improve education for disadvantaged students in remote areas through its UOB My Digital Space programme. In collaboration with Thailand Collaboration for Education, UOB expanded the programme to assist approximately 4,000 students in six schools in six provinces.
The bank also targeted youth development with initiatives such as UOB Money 101, which aims to build financial literacy. Its online financial literacy programme reached over 1,700 lower secondary students nationwide.
The bank also worked on literacy for underprivileged children supporting the Thai Red Cross Society’s Language Literacy Project, raising over Bt1.2 million for the scheme.
UOB also donated 1,500 used digital devices and accessories to the Mirror Foundation, Thailand Collaboration for Education and COM2KIDS, helping over 3,700 rural students.
Best bank for corporates: TMBThanachart Bank
TMBThanachart Bank introduced new digital collection, fleet management, FX and payroll solutions in 2023.
The bank launched ttb Digital collection solutions, a QR application programming interface (API) for business-to-consumer payments, which enables corporate delivery businesses to adopt the bank’s QR API directly in the driver’s app or through the bank’s collection app. It also introduced a fleet management solution for logistics providers, offering online real-time processing.
In 2023 the bank extended its multi-currency account to all exporters and importers, allowing them to manage their FX exposure on one platform. This led to a 60% increase in account balances and a 36% increase in client numbers.
The bank also financed 48 sustainable projects with a total value of Bt9.1 billion ($250 million) during the year. These included Bt675 million lent to Mengseng Starch for energy efficiency and waste reduction initiatives, Bt2.1 billion baht to Inno Precast to develop a green factory and Bt1 billion for Thai Ethoxylate to expand production.
