
Siam Commercial Bank (SCB) is battening down the hatches and scaling back its operations for the next 12 to 18 months, warning of tough times ahead as Thailand’s economy hits choppy waters.
SCB Chief Executive Kris Chantanotoke painted a bleak picture of the months to come, blaming soaring household debt, sluggish growth, and the threat of US tariffs for the bank’s more cautious strategy.
“Both the Thai economy and business sector are expected to encounter increased challenges.”
One major headache is the growing risk of the United States slapping tariffs on Thai exports, a potential blow to a country that sends 20% of its exports across the Pacific.
“If Thailand faces tariffs 10% higher than other regional peers, the economy could be significantly impacted,” Kris said, warning that the move could cripple Thai competitiveness.
As it stands, SCB predicts GDP growth of just 1.5% in 2025, and only 1% in the second half of the year, sparking fears of a technical recession.

To weather the storm, SCB plans to tighten its belt and ramp up digital transformation, aiming to pull in 25% of its revenue from digital banking by 2025.
“If we hit this year’s digital target, we’ll push for even more,” Kris said, noting that shifting online will cut operational costs and reduce the need for bricks-and-mortar branches.
The bank has already trimmed its physical network to around 800 outlets, with more closures likely as digital adoption rises.
But Kris insists branches aren’t going extinct just yet.
“Physical locations will continue to serve an essential role.”
At the same time, SCB will double down on corporate banking, which it sees as a growth engine, while remaining selective in SME and retail lending, with a tilt towards mortgages and wealth management for affluent clients.
SCB also wants to slash its cost-to-income ratio, which already dipped to 36.8% in Q1 this year, as part of a broader move to stay lean in leaner times, Bangkok Post reported.
With debt piling up and export jitters mounting, Thailand’s oldest bank appears to be playing it safe — but whether that’ll be enough remains to be seen.
The story Banking on trouble: SCB scales back as storm brews in Thailand as seen on Thaiger News.