Lack of virtual bank licence ‘not a big problem’ for Bangkok Bank

It estimates that virtual banks’ business revenue will not be significant in the first 5 years of operations.

Bangkok Bank’s lack of a virtual banking licence will “not be a big problem”, according to CGS International.

In its analyst briefing on 23 July 2025, the Thailand-based bank said that virtual banking business revenue will not be significant in the first five years of operations.

“Thus, the lack of a virtual banking license will not be a big problem for the bank,” the investment house said in a report published on 29 July.

Bangkok Bank’s management maintained its 2025 financial targets of a 3%–4% loan growth, a nonperforming loan (NPL) ratio of 3%, a net interest margin (NIM) of 2.8%–2.9%, low single-digit net fee income growth, and credit cost of 0.9%–1%.

Downside risks to the bank’s targets could be from negative loan growth, lower-than-expected NIM from further policy rate cuts, net fee income contraction, and elevated credit costs, CGS International said.

“We note that BBL’s Q2 2025 loan growth was +0.7% from end-2024 whilst the loan demand outlook will be weaker in H2 2025 as it remains to be seen how the US tariffs will affect private investments,” the investment house said.

More rate cuts will narrow the bank’s NIM.