How can Thai banks close the gap in wealth fee income?

KBank and SCB are best placed in wealth services with digital tools and segmentation.

Thai banks lag regional peers in wealth management fee income, pointing to a missed earnings opportunity as investable assets grow and lending slows.

The share of wealth management fees in noninterest income at Thailand’s four biggest banks remains well below Southeast Asian peers, according to an April report by CGS International Securities Pte. Ltd. (CGSI).

Singapore’s DBS Bank Ltd. generated 57.5% of noninterest income from wealth management fees in 2025, CGSI said.

By contrast, the wealth management fee contribution at Kasikornbank Public Co. Ltd. (KBank), The Siam Commercial Bank Public Co. Ltd. (SCB), Krung Thai Bank Public Co. Ltd. (KTB), and Bangkok Bank Public Co. Ltd. ranges from 13% to 19% of noninterest income.

Thai lenders face weaker earnings prospects this year as credit costs stay elevated and loan growth slows amidst the US-Israel war on Iran.

Siam Commercial Bank and Bangkok Bank posted lower first-quarter profits. Kasikornbank posted higher profit, supported by a one-off investment gain. Excluding that gain, net income would have fallen 3% year on year, according to CreditSights, Inc., a Fitch Solutions unit.

CreditSights said credit costs are likely to remain high, weighing on income growth across the sector.

Wealth management is capital-light and does not require credit cost, CGSI analyst Weerapat Wonk-Urai said in the report.

He noted that KBank and SCB are best positioned to expand wealth income due to stronger digital platforms and clearer customer segmentation. Both banks run private banking units for high-net-worth clients alongside retail wealth services.

“We think KBank and SCB are best positioned in wealth management services because they have digital platforms, customer segmentation, and hyper-personalisation using technology for the mass affluent segment,” Wonk-Urai said.

Wealth management contributed 5.8% of total operating income at SCB and 5.5% at KBank in 2025, the highest among the four banks.

He said Bangkok Bank and KTB have greater growth potential but need broader changes, including product upgrades and more relationship managers.

“They will have to integrate wealth management into their core strategy, revamp their wealth products and increase relationship manager capacity,” he said.

Stronger wealth fee growth could lift return on equity across the sector, the analyst said. KBank and SCB are targeting fee income growth of 5% to 9% in 2026, whilst Bangkok Bank and KTB expect growth of 2% to 4%.

Questions to ponder