Thailand private banking and wealth management AUM reaches US$160 bn

Despite disappointing performance in the domestic equity and bond markets and a gloomy outlook for the Thai economy, domestic private banks saw 6% growth in their total AUM to US$163 billion, while that of foreign players rose 35% to US$6 billion.

According to APB Insights’ 2023 Thailand Private Banking & Wealth Management AUM League Tables, all players, both foreign and domestic private banks, reported increases in AUM, with the average growth rates of domestic and international banks being 7% and 62%, respectively.

The banks attributed this growth to key factors such as the inclusion of sophisticated, private assets, asset diversification, as well as collaborations with international private banks and asset managers.

Domestic banks with the most significant growth are Krungthai Bank, whose private banking AUM grew 17% to US$14 billion, while CIMB Thailand and Kiatnakin Phatra Securities both grew 10% to US$24 billion and US$22 billion respectively.

As for the international banks, who have a relatively smaller base, all of them delivered growth with double to triple digit growth rates.

Bullish on private markets

Thai investors have a home bias for domestic equities and the China market, so private banks saw disappointing portfolio performances in 2023. This led to calls for alternative investments, which carry low volatility and uncorrelated returns.

Siam Commercial Bank aims to increase its current 10% allocation to private markets to 15%, while Kiatnakin Phatra Securities has also been introducing clients to this asset class and anticipates increased global exposure in its wealth assets.

However, despite the private banks’ growing appetite for private market allocations, this remains a headache because clients are still cautious of the asset class which is classified high-risk in Thailand due to its structure and potential complications.

“I think clients seek a more uncorrelated investment among this market volatility, and we try to keep it no more than 15% of their portfolio,” said Petcharat Yingchatchaval, senior executive director, chief, private banking at Kasikornbank.

Domestic international collaborations

With foreign players eyeing Thailand, domestic private banks have been partnering up with international firms knowing directly competing head-to-head with such firms would be an uphill battle.

Siam Commercial Bank established a joint venture with Julius Baer, SCB Julius Baer, six years ago, while Kasikornbank has been collaborating with Lombard Odier for ten years. Through this alliance, Karsikornbank’s private bankers received in-house training.

Regarding their alliance with an international bank, Poramin Chantanusat, head of relationship management at SCB Private Banking, said, “If we don’t do it first, someone else will do it.”

Regulatory changes, foreign banks unfazed

Despite a change in tax rules requiring Thai residents who plan to transfer income from abroad into the country to pay a personal income tax of up to 35% upon remittance, global private banks in Thailand are confident this will not dampen their business.

As Thai UHNWIs typically have separate pools of onshore and offshore capital generated from their multinational businesses, HSBC GPB believes the latter parts do not necessarily have to be remitted back to Thailand. SCB Julius Baer also pointed out that money invested by wealthy Thais is usually for the long term, making tax situations and foreign exchange fluctuations mere noises in the systems.

Domestic Banks

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More	Rank			Bank Name	Bank type	2023 AUM (USD B)	2022 AUM (USD B)	YoY % Change	Min Asset Threshold (USD)
				TMB Thanachatt Bank	Wealth management	29.86	28.85	3.50%	146K
	In 2023, TMB Thanachart’s wealth client number stood at approximately 50,000. The bank plans to expand that figure by 7,000 per year going forward as the bank targets wealthy customers with its TTB Reserve credit card. The bank also established an investment office and expanded wealth management services to grow and diversify its clientele. In addition, the bank has been conducting seminars to guide customers on wealth-building strategies and wealth management through insurance solutions, which TMB Thanachart has been promoting in the past year to ensure clients’ long-term financial security. *Note: AUM: APB estimate Chavamon Vinijtrongjit head of private banking
				KBank Private Banking	Private banking	26.52	26.00	2.00%	1.5M
	KBank has been advising its private banking clients to invest in private assets and private equity funds, as well as alternative products for risk diversification. The bank also provided life insurance services for affluent and HNW clients with wealth transfer and legacy planning needs. Outside of its private banking unit, KBank established its wealth management and bancassurance division to enhance the capabilities of personnel providing wealth management services. *Note: AUM: APB estimate Jirawat Supornpaibul private banking group head
				SCB Private Banking	Private banking	26.40	25.97	1.66%	1.5M
	To grow AUM amidst cautious investment sentiment, SCB Private Banking implemented a more personalised advisory approach and leveraged analytics to provide clients with deeper insights and more tailored solutions. The private bank has also been acquiring new wealth lending clients and fostering cross-segment collaborations. On the digital front, operated by its relationship managers, SCB Private Banking adopted a new streamlined data-driven planning and decision-making process to enhance client experience and operational efficiency, in hopes to further boost client satisfaction and retention. *Note: AUM: provided by the bank Peerapong Jirasevijinda first executive vice president, head of private banking
				CIMB Thailand	Wealth management	23.35	21.25	9.90%	N/A
	CIMB has been strengthening its wealth and affluent franchises through focused investments and greater regionalisation. In Thailand, the bank has been focusing on expanding its consumer finance segment, especially the wealth management unit, alongside its car and motorbike financing businesses. However, Thailand’s profit before tax contribution declined 45.5% YoY in 2023 due to increases in provisions as the bank adopted a more conservative provisioning policy, on top of higher operating expenses. *Note: AUM: APB estimate Paul Wong CEO of CIMB Thai
				Krungsri Bank	Wealth management	21.70	20.50	5.87%	146K
	In 2023, Krungsri Bank targeted wealth and HNW clients with its digital platforms, websites and social media under the concept of “making financial matters simple” to provide recommendations for investment decision-making according to clients’ financial goals and risk profiles. The bank has also been upskilling its personal wealth managers to serve as financial advisors. These advisors are expected to use the latest digital platforms and tools to conduct product sales presentations and deliver quality services promptly. *Note: AUM: APB estimate Win Phromphaet head of high net worth division
				Kiatnakin Phatra Securities	Private banking	21.70	19.77	9.76%	1.4M
	Despite noticing a challenging market environment, Kiatnakin Phatra Securities secured AUM growth and helped clients navigate through difficult market conditions by advising clients to reduce home bias and build diversified portfolios across asset classes and geographies, in which it saw notable success in structured products and alternatives. To differentiate itself, the firm has been collaborating with product partners and using an advisory-led, solution-based approach rather than a product-push strategy. In 2023, it launched an unhedged global fixed-income fund to address high hedging costs. *Note: AUM: provided by the bank Narit Kosalathip managing director, head of wealth management group
				Krungthai Bank	Wealth management	13.60	11.66	16.67%	58K
	In 2023, Krungthai Bank partnered with Fidelity International to enhance its wealth management and investment services. Fidelity provides the bank with recommendations for investment portfolio allocation, strategies for market timing, and other such services. As for digitalisation, the bank launched new platforms and adopted wealth tech to go beyond traditional banking services. Other than that, the bank rolled out its “wealthy retirement savings” service for retirees. *Note: AUM: APB estimate Payong Srivanich CEO
				Total		163.14	154.00	5.94%

International Banks

More	Rank			Bank Name	Bank type	2023 AUM (USD B)	2022 AUM (USD B)	YoY % Change	Min Asset Threshold (USD)
				SCB Julius Baer	Private banking	3.55	2.45	32.50%	3M
	In 2023, SCB Julius Baer saw its value proposition of delivering global wealth management solutions and its advisory capabilities to be key drivers of its business. As for client portfolios, the private bank has been providing a combination of discretionary mandates at core and tactical solutions as satellite investments for clients. With impacts on the wealth management industry from Thailand’s tax regime changes yet to be seen, SCB Julius Baer identified key factors for success to be sharing with clients the importance of international investments, as well as the benefits of accessing global investments solutions and wealth planning. *Note: AUM: APB estimate Adrian Mazenauer head of wealth management
				LGT	Private banking	1.80	1.50	20.00%	3M
	After establishing its Thai presence in 2019 and acquiring Australian wealth manager Crestone, who is also present in Thailand, the bank noticed favourable results from its APAC expansion, which includes Thailand, alongside Australia, India and Japan. On a group level, total AUM grew 10% to the highest year-end level in LGT’s history of CHF 316 billion in 2023 after seeing an increase in net new money and its abrdn UK wealth management business acquisition. *Note: AUM: APB estimate Ekkapob Makeguljai CEO Thailand
				HSBC	Private banking	0.70	0.30	133.33%	2M
	After seeing success from its commercial banking business in Thailand and planning to benefit from wealthy Thais seeking offshore investments, HSBC launched its onshore private banking business in the region in 2021. With 13 global booking centres, including Singapore, and 40 global jurisdictions, the bank delivers services to UHNW entrepreneur Thai clients such as credit, advisory and family office solutions. *Note: AUM: APB estimate Lok Yim regional head of global private banking, Asia Pacific, HSBC Global Private Banking
				Total		5.75	4.25	35.21%

Methodology

Some banks publicly state their regional AUM totals, others don’t. Therefore, the datasets presented here contain a mix of estimates, shared, and reported figures. We also recognise that banks are inconsistent in the way they count AUM. And their minimum investment requirements can range widely, starting from as little as US$58,000 and going up to as high as US$3 million.

Totals may include assets under custody and/or loans, and may be distorted by double-counting. Where possible, we footnote for or provide some guidance on these variables. However, in the absence of enforced or agreed-upon standardisation and transparency, these inconsistencies will continue to undermine our ability to directly compare banks’ AUM.

Mid-market rates used as at 31 Dec 2023 for their respective years for non-USD reporting. For 2023: THB-USD 0.029039