Thai banks target $31b wealth market as lending slows

CGSI expects wealth services to become more important over the next three years.

Thai banks are expected to place greater emphasis on wealth management over the next three years as slower loan growth and lower interest rates limit earnings from traditional lending.

CGS International Securities said wealth management offers banks an opportunity to grow fee income without taking on additional credit risk. The report estimates Thailand had around 517,674 potential wealth management customers at the end of 2025, with investable assets from individual savings and fixed deposits totalling approximately $30.6b (THB1.02t).

The report expects Kasikornbank (KBANK) and SCB to be the best placed to benefit, citing their digital platforms, customer segmentation and private banking services for affluent and ultra-high-net-worth clients.

Wealth management fees have increased at KBANK, Krung Thai Bank (KTB) and SCB over the past three years.

In 2025, wealth management contributed 5.8% of SCB's total operating income and 5.5% at KBANK, the highest amongst Thailand's four largest banks. CGSI said both banks' earnings are the most sensitive to growth in fee income between 2026 and 2028.

Customers with deposits of $30,000 (THB1m) to $300,000 (THB10m) accounted for 34.4% of total investable assets, whilst those with deposits above $3m (THB100m) represented 36.2%.

CGSI estimates Bangkok Bank (BBL) and KTB have the largest pool of potential wealth management assets because of their sizeable deposit bases.

However, it said both banks would need to strengthen wealth management as a core business, expand their product offerings, and increase relationship manager capacity to capture the opportunity.

The report said Thailand's banking sector has been shifting towards wealth management since 2018, after digital payment services reduced income from transaction fees.

Banks are also preparing for tighter regulation of basic banking charges, which is expected to increase the importance of fee income from products such as mutual funds, brokerage and bancassurance.

Amongst ASEAN banks, DBS generated the highest contribution from wealth management fees, with the business accounting for 57.5% of its non-interest income in 2025.

Its wealth management fee income recorded a compound annual growth rate of 14.3% between 2017 and 2025.

By comparison, wealth management contributed 13% to 19% of non-interest income at Thailand's four largest banks.