Large banks anticipate achieving sustainable loan growth targets ahead of their timelines over the next few years, aligning with Thailand's net-zero transition goals.
Kris Chantanotoke, chief executive of Siam Commercial Bank (SCB), said as of March this year, SCB had provided sustainable financing worth 86 billion baht.
The bank aims to expand this financial portfolio to 150 billion baht by 2025, but it may reach this goal ahead of schedule thanks to the country's net-zero transition initiatives, he said.
Kasikornbank (KBank) said it expects to expand its sustainable financing and investment portfolio of green banking products to 130 billion baht by the end of 2024, up from 73 billion last year.
The bank plans to grow this portfolio to 200 billion baht by 2030, but could reach the target earlier than expected, said KBank president Pipit Aneknithi.
"Given the net-zero commitments of large local corporations and KBank, we believe we can achieve 200 billion baht in sustainable finance before 2030," said Mr Pipat.
KBank's green banking products include green loans, green bonds, transition finance and venture capital (VC). The bank supports renewable energy loans for projects such as electric vehicles and solar rooftop installations, targeting small and medium-sized enterprises (SMEs) and retail customers.
For KBank's VC operations through its subsidiary Beacon Venture Capital, investment is focused on tech startups with sustainability goals, he said.
Prakob Phiencharoen, head of the corporate and investment banking group at Bank of Ayudhya (Krungsri), said the bank increased its loans related to environmental, social and governance (ESG) goals to 71 billion baht between 2021 and 2023.
Although Krungsri aims to grow this portfolio to 100 billion baht by the end of 2030, it is likely to achieve this goal ahead of schedule, he said.
Meanwhile, UOB Thailand expanded its sustainable loans to 33 billion baht last year, accounting for 25% of total new loans. The bank introduced the UOB Sustainability Compass, an industry-first tool designed to help SMEs begin their sustainability journeys.
According to the Bank of Thailand, large local banks provided green loans worth 190 billion baht in 2023. Although this amount is small relative to total outstanding loans in the banking sector, it indicates a positive trend in the adoption of green loan products.
The central bank said several banks have committed to achieving net-zero emissions by 2065, in line with Thailand's national goals. These banks set targets to expand sustainable finance over 5-10 years, offering a range of financial products and services.
Banks are required to submit their product programmes to the regulator by the third quarter of this year.
