The Bank is aiming for a 4%-6% loan growth this year, focusing on cost cutting, boosting productivity and stronger competitiveness over the long term. In its financial targets for 2021, the bank expects retail loan growth at 11%-13%, SME loan growth at 2%-4%, and corporate loan growth at 1%-3%. Net interest margin is expected to be at 3.1% to 3.3%, at par with interest rate trend. KASIKORNBANK sees a low single-digit growth in terms of net fee income, which will come from credit card business, loan-related, and fund management business. Cost to income ratio is at mid-40s with revenue growth under pressure due to sluggish economic recovery. Gross non-performing loans is likely to be 4%-4.5% whilst credit cost will be up to 160 basis points.
Drastic changes brought about by the pandemic, the bank has committed to operate business under “bank of sustainability” principles with a goal to empower every customer’s life and business through end-to-end services that meet all customers’ needs. These include building strategies for growth through digital payments, democratizing investment and insurance, and penetrating the regional market, amongst others. KASIKORNBANK also aims to create a trusted brand via communication and management of experience and boost long-term competitiveness through its eight transformation journeys.