A woman inspects fabric on sale at Bangkok's Sampheng Market near Chinatown. SME loans across the banking industry contracted by 4% in the first quarter this year, marking the 15th consecutive quarter of decline. Apichart Jinakul
Kasikornbank (KBank) expects its small and medium-sized enterprise (SME) loans to post positive growth this year, after recording growth in the first quarter despite an overall contraction in lending.The bank's SME loan portfolio showed positive growth in the first quarter despite a decline in total lending. The positive momentum is expected to continue for the rest of the year, according to KBank president Pipatpong Poshyanonda.
KBank, the country's third-largest lender by total assets and a key player in SME lending among Thai banks, expanded its SME loan portfolio by 0.5% in the first quarter from the end of last year. Meanwhile, the bank has set a target for SME loan expansion this year ranging from flat growth to a 5% contraction.
In the first quarter of 2026, KBank's total loan portfolio contracted by 1.1%, compared with the bank's full-year loan growth target of 0-2%. Excluding the SME segment, retail and corporate loans declined by 1.9% and 0.8%, respectively.
