...July 21, 2022 SINGAPORE (S&P Global Ratings) July 21, 2022--Thailand's KASIKORNBANK PCL (KBank) will be walking a tightrope between investing in growth and asset quality. Tough conditions will make it harder to pull this off; however, the bank has ample capital buffers to absorb potential pressures. KBank is strategically looking to expand its target market, similar to some other Thai banks that have been seeking various opportunities for growth and yield enhancement. For example, KBank plans to strengthen its regional presence by entering the lucrative Indonesia market through its planned acquisition of a 67.5% stake in PT Bank Maspion Indonesia Tbk. It also aims to target unbanked and underbanked populations as well as very small businesses and the self-employed. At the same time, the bank has been focused on preserving asset quality. Its performance in the second quarter of 2022 was broadly in line with our expectations, with reported nonperforming loans remaining stable at 3.8%, partly...
