Banks’ financial statements for 1Q24 benefit from lower provisions, while net interest income and NIM may decline going forward (Current Issue No.3486)

• The operating results of most commercial banks in 1Q24 were driven by a decrease in expected credit losses, while income from core businesses saw limited growth.
• For the remainder of 2024, income from core businesses and loans to customers may get an additional boost if the Thai economy sustains its recovery momentum.
• However, it is expected that commercial banks will prudently operate their businesses and accelerate efforts in NPL management, while net interest income may face pressure from financial costs. Attention must also be paid to future interest rate trends.