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27 Jan 2025

Financial Institutions

Five key challenges for the banking sector in 2025 (Current Issue No.3552 Full Ed.)

คะแนนเฉลี่ย
  • The 2024 financial statements of nine listed banks reveal three key points: 1) their non-interest income saw improvement, though interest income was still the main source of their core business income; 2) non-performing loans (NPLs) remained manageable, but the ratio of NPLs to total loans increased compared to the end of 2023; and 3) provisions for expected credit losses gradually decreased, particularly in the second half of the year.
  • For 2025, KResearch anticipates five key challenges that banks must address amid economic uncertainties both at home and abroad. These include: 1) limited recovery in core business income; 2) efficient management of expenses and costs; 3) provisions for expected credit losses at levels consistent with risks of banks’ loan portfolios; 4) proactive asset quality management; and 5) monitoring of additional regulatory requirements, and formulation of strategies to navigate heightened competition, particularly from virtual banks.

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Financial Institutions