Bank of Ayudhya Pivots to ASEAN as Thai Economy Hits a Wall

Is the Thai economy too small for its biggest banks? Bank of Ayudhya, commonly known as Krungsri, isn't waiting around to find out. As a sluggish domestic market weighs on earnings, the lender is aggressively accelerating its overseas expansion. According to Nikkei Asia, the bank's strategy now centers on regional acquisitions and a new advisory arm to bridge Thai corporates with the rest of Southeast Asia.

Escaping the Domestic Slowdown

The numbers tell a sobering story. In Q3 2025, Thailand's GDP growth slipped to a 4-year low as exports sputtered. The central bank recently cut interest rates by a quarter point, squeezing interest margins for major lenders. For Krungsri, which has a massive exposure to the auto loan sector currently hit by EV price wars, the domestic outlook remains challenging.

The Krungsri ASEAN Link Strategy

To counter this, the bank launched Krungsri ASEAN Link, an advisory service designed to facilitate Thai investment into Vietnam, the Philippines, and Indonesia. It's not just a solo mission; as a unit of Japan’s MUFG, Krungsri is leveraging its parent's massive regional footprint to transform from a local player into a regional financial powerhouse.