Tech glitches, failed cost targets plaque Thai banks
Asian Banking & Finance|Issue 113
KBank's credit costs rose by 11 basis points to 219 bp in 2023, a step further from its target range of 140 to 160 bp.
Tech glitches, failed cost targets plaque Thai banks

Thailand's largest banks grapple with mobile app glitches and escalating bad loans through 2024 and into 2025, among other challenges.

Three of these banks- Siam Commercial Bank X (SCBX), Kasikornbank (KBank), and Krung Thai Bank (KTB)- will face credit cost pressures in 2024, on top of their own individual challenges, UOB Kay Hian analyst Tanaporn Visaruthaphong and assistant analyst Thanawat Thangchadakorn said.

All three banks already saw their credit costs rise in 2023 despite targeting otherwise. KBank saw its credit costs rise by 11 basis points (bp) to 219 bp, casting it further from its target of between 140 to 160 bp. SCBthe traditional banking arm of SCBX -exceeded its target credit costs for 2023, at 182 basis points (bp).

It's the same story for KTB, whose credit costs were at 199 bp at the end of the fourth quarter. In comparison, its credit costs were just 124bp in the third quarter, and 115 in Q4 2022.

SCB called to overhaul mobile app

Siam Commercial Bank (SCB)'s tech difficulties in its mobile banking app had the analysts advise it to overhaul the app.

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