Krungthai Bank (KTB) has exercised careful asset management, enabling the state-owned bank to reduce its non-performing loans (NPLs) excluding government-assisted contracts from 4.4% of the portfolio in 2020 to just 2.7% in the first nine months of this year, say executives.
In comparison, peer banks recorded more moderate improvements, with NPLs stabilising around 3.1-3.4% for the same period, said Tawatchai Cheevanon, chief product and business solutions officer.
"KTB reduced its NPL ratio to levels comparable with leading peers, reflecting strong risk management and operational stability," he said.
As of Nov 25, KTB's market capitalisation was 381 billion baht.
The bank contributed to the Thai economy and demonstrated robust financial performance over the past five years, returning more than 246 billion baht to society and the economy, including 124 billion to the Finance Ministry, its major shareholder, said Mr Tawatchai.
KTB also contributed 122 billion baht to the government through dividends, taxes, and Financial Institutions Development Fund fees, maintaining a balanced and sustainable distribution aligned with its financial performance.
He said the bank is addressing financial inclusion challenges in Thailand. Surveys indicate 27% of Thai households have no savings, 39% spend before saving, and only 2% of the elderly can rely on adequate retirement savings.
In response, KTB introduced financial innovations such as an app that allows citizens aged 15-94 across the country to invest with as little as 100 baht, with accumulated nationwide investments now exceeding 105 million baht.
The bank also used digital technology to improve its services, such as offering electronic deposit solutions for inmates. This innovation reduced travel costs for their relatives, lightened the workload for staff, enhanced system security, and supported government initiatives for digital transformation.
The bank serves more than 21 million digital users and has roughly 40 million digital subscribers, underscoring its role in promoting widespread access to digital and financial services.
Suripong Tantiyanon, chief retail banking officer, said the proportion of Thailand's population aged 60 or older is projected to rise from 21% in 2024 to 28% by 2034. As a consequence, KTB is monitoring the financial behaviour of younger customers to ensure it provides tailored financial solutions.
The bank identified six priority segments: wealth clients, non-government employees, retirees and pre-seniors, small businesses and the self-employed, youth, and the lower mass segment. KTB plans to offer customised products and services, supported by advanced data analytics, artificial intelligence (AI) tools, and optimised customer journeys.
To achieve these objectives, he said the bank set five strategic initiatives: maintaining supply chain connectivity, driving new revenue engines, accelerating operational excellence, leveraging technology to enhance productivity, and cultivating a sustainable culture of organisational transformation.
In parallel, the bank is advancing an AI-driven transformation focusing on training employees, fostering cross-functional collaboration, and deploying AI-powered tools for wellness-integrated financial planning.
Mr Suripong said the programme aims to develop AI-era leaders who are intelligent, adaptable, cooperative, socially aware and loyal, ensuring the bank's shift to AI-powered operations maintains customer trust.
KTB's position as a leading, future-ready financial institution in Thailand will be strengthened to deliver personalised services and become a smarter decision-making organisation that generates sustainable growth, he said.