11 Apr 2023
Financial Institutions
Thai banks in 1Q23…Despite growing income from core businesses, cautious outlook for bad debts remained ... Read more
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21 Dec 2022
In 2022, Thai banks have operated business amid numerous challenges. These include debt resolution for pandemic-stricken borrowers; change from broad-based measures issued by the policymakers in support of financial institutions which provide assistance to borrowers to specific measures which are gradually allowed to expire; and interest rate hikes in line with the policy rate amid the economic recovery. However, Thai banks’ operating performance during the first nine months of 2022 gradually improved from 2021. KResearch projects that the 2022 operating profit (before provisioning and tax) of domestically-registered commercial banks (Thai banks) will increase by 12.4 percent from the previous year, in line with continual loan growth. If combined with lower provisioning expenses compared to those of the previous year which were proactively set aside, net profit of the Thai commercial banking system is expected to reach approximately THB 230 billion, increasing by 34 percent from the previous year.... Read more
17 Oct 2022
Gradual post-lockdown economic recovery expected to support commercial banks’ income from core businesses in 3Q22…but close attention must be paid to economic uncertainty going forward ... Read more
9 Oct 2020
KResearch assesses that the pandemic-stricken economic environment continued to undermine commercial banks’ profitability in 3Q20, with both interest income and fee income on a declining trend that corresponds to the continuous slump in economic activity across many sectors. Moreover, the interest income of the entire system of Thai commercial banks was further impacted by the downward trend in lending rates, which have been falling since late 2019. KResearch projects that the net profit of the Thai banking system in 3Q20 will fall to an estimated level of THB 30.8 billion, or a drop of 66.5 percent YoY in comparison to a net profit of THB 91.6 billion in 3Q19 wherein one particular bank recorded extraordinary profit through the sale of an insurance company’s shares that the bank had held. Nonetheless, this net profit inched up slightly, by around 3.7 percent, compared to the previous quarter due to lower provisioning expenses for 3Q20 among several commercial banks that may somewhat experienced a slowdown after they pursued a proactive provision policy by setting aside exceptionally high provisioning in 2Q20... Read more
20 Jul 2020
Persistent weakness seen in the Thai economy as a result of the coronavirus (COVID-19) pandemic since early 2020 has substantially hurt the profitability of commercial banks during 2Q20. The highly volatile economic cycle at this time has pressured income of commercial banks’ core businesses and in turn driven up their expected credit losses to a higher-than-normal level.... Read more
25 Nov 2019
Net loans in October 2019 decreased from the previous month by 87.7 billion Baht amid the pressure on loans at almost all banks, especially from debt repayment by the corporate sector, SME business operators and the government. Nonetheless, retail loans, namely, personal loan and other unsecured loans without collateral, continued to increase due to seasonal factors. Auto hire purchase loan and mortgage loan rose from the previous month, albeit at a slower pace. Consequently, outstanding net loans in October 2019 slowed to 11.702 trillion Baht, an increase of only 2.40 percent YoY – the lowest rate in over two years – and decelerating from 3.92 percent growth YoY in September 2019. The trend is a reflection of poor economic performance, which restrains the recovery of borrowers’ demands to withdraw funds from their loan facility. ... Read more
26 Sep 2019
Net loans of commercial banks (14 banks) in August 2019 increased only 3.84 percent YoY, the same growth as the rate registered in July 2019, which is the lowest rate in 21 months. Loan outstandings continue to slow in alignment with the overall economic sentiment. In particular, business loans are under pressure from debt repayment, while newly-approved loans expanded within a limited range. Moreover, the bond yield of the Thai market has steadily declined. Hence, the issuance of corporate bonds is an option for medium and large companies to raise funds with low cost. Even though retail loans sustain their growth, the housing loans and auto hire purchase loans decelerated due to a high base effect in the previous year. Additionally, buyers’ demands in the property and auto markets were mostly absorbed earlier. ... Read more
18 Jul 2019
We at KResearch project that net profit overall of commercial banks registered in Thailand will reach approximately THB51-52 billion in 2Q19, declining from the THB52.59 billion reported for 1Q19. Operating profit in 2Q10 may recover at a slower pace because income growth from core business of commercial banks, including interest income, plus fees and service income, hinges on a clear economic recovery, which is expected to begin during 2H19.... Read more
26 Feb 2019
KResearch summarizes the information about loans, deposits and financial liquidity at 14 Thai commercial banks as of the end of January 2019 based on the Summary Statement of Assets and Liabilities with highlights as follows: ... Read more
29 Jan 2019
In December 2018, net loans overall grew over the previous month by THB118 billion, or 1.03 percent MoM. As a result, net loans for 2018 increased 5.17 percent YoY, with net outstanding loans outstanding at THB11.63 trillion. Growth was seen in all types of loans, led by retail loans. Meanwhile, outstanding deposits rose over the previous month by THB136 billion, or 1.09 percent MoM to THB12.58 trillion. Deposits overall in 2018 grew 3.96 percent over that reported at the end of 2017, led by savings deposits at large banks. ... Read more
24 Dec 2018
The year 2018 has been another year for Thai banks to always be vigilant of various issues. While their fee incomes have contracted due to the reduction of digital funds transfer fees, loan growth has been helpful in offsetting this negative factor. With the support of retail loan growth in the last quarter of 2018, total loan growth is expected to end the year with a higher rate than KResearch’s estimate of 6.0 percent.... Read more
1 Jan 1
In April 2018, net loans overall increased 0.61 percent MoM (THB67.8 billion), or 4.81 percent YoY to THB11.14 trillion, as expected. The increase was seen at almost all banks, led chiefly by business loans and retail loans (which include home, hire-purchase and unsecured personal loans). Meanwhile, deposits hit a four-month high of THB12.36 trillion, rising 0.99 percent MoM (THB121 billion), or 6.28 percent YoY. ... Read more