24 Apr 2024
Financial Institutions
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21 Feb 2024
30 Jan 2024
11 Apr 2023
Thai banks in 1Q23…Despite growing income from core businesses, cautious outlook for bad debts remained ... Read more
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
26 Jul 2022
Sustainable finance has seen rapid growth worldwide. In 2021, sustainability debt instruments were valued at USD 929,700 million, or 10x growth over the past five years, while sustainability loans amounted to USD 716,561 million, or 7x growth from 2018. Meanwhile, Thailand’s total outstanding value of sustainability debt instruments in the second quarter of 2022 was THB 330,049 million – these were mainly sustainability government bonds, followed by green bonds for energy projects. KResearch projects that there will be issuances of sustainability debt instruments worth THB 76,000 million in 2022, or 12.1-percent growth from 2021, in alignment with economic expansion. However, in the next two to three years, the tighter monetary policies of central banks worldwide, including Thailand, will result in slowing expansion of debt instruments. Meanwhile, in the long term, renewable energy policies and the support of financial regulatory agencies will be major factors which will drive the increasing popularity of sustainability debt instruments.... 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
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
23 Mar 2018
We at KResearch expect that the Monetary Policy Committee (MPC) will likely keep its policy rate unchanged at 1.50 percent during the second meeting of 2018 scheduled for March 28 to ensure continuing growth in the Thai economy going forward amid a number of external risks, in particular a possible US-China trade war. The current inflation rate, which remains at the lower band of the Bank of Thailand’s inflation target, will also support the MPC to continue its accommodative monetary policy stance. ... Read more