Kasikornbank (KBank) expects the ongoing war in the Middle East to weigh on the bank's asset quality in the second half of the year, while pledging to provide proactive support and relief measures for customers affected by the conflict.
Kattiya Indaravijaya, chief executive of KBank, said the prolonged conflicts in the Middle East have affected some customers' debt repayment capacity. The impact is expected to become more evident in the second half of the year, she said.
The bank's exposure to businesses linked to the Middle East market accounts for around 10% of its total loan portfolio.
KBank has provided financial assistance to potentially affected customers as a proactive measure to help maintain their debt repayment capacity and preserve asset quality, she said.
"Beyond financial assistance, the bank also advised customers on market diversification. Addressing these challenges requires collaboration among all relevant parties, particularly the government sector," Ms Kattiya said.
Given economic headwinds stemming from both domestic and external factors, the bank will continue to operate cautiously in terms of investment and loan expansion.
KBank, the country's third-largest lender by total assets, maintained its total loan growth target of 0-2% after posting a 1.1% contraction year-on-year in the first quarter.
Excluding the small and medium-sized enterprise (SME) segment, retail and corporate loans declined by 1.9% and 0.8%, respectively, for the quarter.
The bank's SME loan portfolio expanded by 0.5% in the first quarter from the end of last year.
Ms Kattiya said the economy and the bank's operations are expected to face heightened uncertainties and challenges for the remainder of the year. Key risks include the war in Iran, geopolitical tensions and developments in US tariff policies.
Speaking at the 2026 Earth Jump seminar titled "A Bridge to Empower Action" hosted by KBank on Tuesday, she said the bank remains committed to its net-zero emissions target by 2050, in line with the government's roadmap.
Ms Kattiya said KBank is emphasising four approaches: bridging the gap from survival to resilience, from regulation to opportunity, from large corporates to SMEs, and from commitment to implementation.
Through these four approaches, the bank wants achieving net-zero emissions to be viewed not as a burden, but as a gateway to greater opportunities. All stakeholders should shift their mindset from merely surviving in the short term to capturing opportunities for sustainable growth, she noted.
The transition to net zero is not solely the responsibility of large corporations, said Ms Kattiya. Instead, transformation must take place across the entire supply chain, including SMEs, because the long-term success of large corporations depends on the resilience of their supply chains.
Achieving sustainability requires concrete action and tangible results, she said.
