Analysts believe that, in addition to the size of assets, the merger will combine a vast customer base that will become stronger in the future, making it easier for new banks to compete with BBL, KBANK and SCB.
KTB's strength lies in the solid foundation of government and civil servant clients, while TTB's strength lies in retail loans, particularly in car loans that hold the highest position in the market.
Integrating the strengths of both banks in the digital banking sector will further enhance future competitiveness and open up new opportunities for partnerships, collaboration and new business outlook.
Piriyaphon Kongwanichinvestment analysts at Bualuang Securities estimate that the THAI banking industry will not experience significant growth this year.
He warned that weakness in the domestic economy, high domestic debt and contract purchasing power could slow down. Other factors behind the projected slowdown in the banking industry include export challenges and inflows of cheap goods from overseas, which are putting pressure on Thai small and medium-sized businesses.
He estimated that the bank's potential revenue growth would likely come from wealth management businesses, driven by Thailand's aging population and trends in investing in foreign stocks. Furthermore, thanks to the high reserves of the Thai banking industry, it will continue to focus on cost reductions through the transition to digital banking, while maintaining low financial risks.
