SCB sees modest loan growth

Siam Commercial Bank (SCB) expects modest loan growth to continue in 2025, despite a slower economy and increased challenges arising from both external and internal factors.
According to Kris Chantanotoke, chief executive of SCB, for 2024 and 2025 the bank expects flat growth for its total outstanding loans, in line with sluggish economic expansion.
SCB forecasts GDP growth of 2.7% this year, with a slight decline to 2.4% in 2025.
SCB, the country’s fourth-largest lender by total assets, foresees economic pressures from both internal and external forces. In 2025, geopolitical risks will remain significant, particularly the impact of US tariff policies on China, which could affect exports and local small and medium-sized enterprises (SMEs).
Domestically, household debt remains a significant challenge for the banking sector in 2025, particularly within the retail loan segment.
The bank is prepared to assist individuals and SMEs in managing their debt burden, in accordance with regulatory requirements.
Regulators are expected to announce a comprehensive new debt restructuring scheme next month, said Mr Kris.
The household debt-to-GDP ratio fell to 89.6% in the second quarter this year, down from 90.7% the previous quarter.
The Bank of Thailand reported a 2% year-on-year contraction in the banking sector’s loans for the quarter, marking the first contraction in 14 years.
Despite these challenges, he said SCB would continue expanding loans across all segments, including retail, SME and corporate banking, using a selective approach.
In the retail segment, particularly for mortgages and auto loans, the focus will be on customers with a minimum monthly income of 50,000 baht, said Mr Kris.
In addition to these three core business segments, he said wealth management also plays a key role in the bank’s revenue generation.
SCB ranks first in customer satisfaction for both SME and corporate banking, said Mr Kris.
As a result, the bank wants to elevate the other two business segments to become industry leaders as well, he said.