Krungsri Bank Raises Sustainable Finance Target to 250 Billion Baht, Outlines Growth Strategy

Krungsri Bank (Bank of Ayudhya) has dramatically raised its sustainable finance target to 250 billion baht by 2030, a substantial increase from the previous goal of 100 billion baht, underscoring its dedication to environmental and social responsibility.

This move, aligning with global sustainability trends, was announced alongside the bank's 2025 strategic priorities and growth targets.

Building on the 95 billion baht disbursed by the end of 2024, Krungsri aims to strengthen its leadership in sustainable finance through an expanded Social and Sustainability Finance (SSF) portfolio. 

President and Chief Executive Officer Kenichi Yamato emphasized the bank's focus on supporting clients with sustainable finance solutions and driving environmental responsibility through green finance initiatives.
 

For 2025, Krungsri has set an overall loan growth target of 2-4%, with corporate lending expected to expand by 5-7%, reflecting a cautiously optimistic outlook based on Thailand's projected GDP growth of 2.7%.

The bank anticipates stable performance in the SME sector, focusing on working capital needs, while the retail segment is forecast for low single-digit growth due to high household debt concerns. Auto loans are expected to stabilize, and credit card and personal loans are targeted to grow by 5-7%.
 

To achieve these targets, Krungsri will focus on three strategic priorities: the "ONE Krungsri" initiative to promote unified, agile, and customer-centric operations; expansion of its ASEAN network, focusing on cross-border payments and digital financial solutions; and sustainability leadership.

The bank also remains committed to investing in its workforce through the "People Xcellence" strategy and in digital infrastructure, including embedded finance solutions and AI, to enhance customer experiences.

In 2024, Krungsri reported a net profit of 29 billion baht, navigating a challenging economic environment. The bank maintained its leadership in ESG bond underwriting with a 19% market share and supported over 500 SMEs through ESG programs.

Krungsri's ASEAN operations, spanning Laos, Cambodia, Vietnam, the Philippines, and Indonesia, contribute approximately 20% of the bank's total revenue, serving over 19 million customers.
 

Regarding interest rates, Krungsri is considering reducing its rates following the Bank of Thailand's policy rate cut of 0.25 percentage points to 2% per annum. The proposal will be submitted to the bank's Asset and Liability Management Committee (ALCO) for further deliberation.

"After the central bank's rate cut, it's standard procedure for commercial banks to consider adjusting accordingly," Yamato said.

The ALCO board is currently reviewing whether to implement reductions across all products, including lending and deposit rates, with homeowners on floating rate mortgages expected to be the primary beneficiaries of any reduction.
 

The bank anticipates a Non-Performing Loans (NPL) ratio between 3.25% and 3.50%, with vulnerabilities concentrated in the mid-to-small SME segment across domestic and ASEAN operations. Krungsri also expects a net interest margin (NIM) of 3.8-4.1% and a cost-to-income ratio in the mid-40s%.

"Tomorrow starts now – Shaping the Future Together. We recognize that challenges create the greatest opportunities. Our 80 years of growth and transformation serve as a foundation to continue our journey toward a sustainable future and digital banking. Together, we will drive growth, embrace innovation, and stay true to our purpose – making customers' lives simpler every day," Yamato concluded.