Thai banks strong, despite drop in loans: BOT
Play
Thai banks remained financially strong in the second quarter, despite a slowdown in new loans, according to Bank of Thailand.
Anupap Kuvinichkul, the senior director for the Financial Institutions Strategy Department, revealed on Thursday that Thai banks showed high net profits in the quarter, high capital base and good quality of loans.
In the quarter, all Thai banks showed the combined earnings of Bt58.1 billion, up from Bt52 billion in the same period last year. Excluding extraordinary income, the earnings would be Bt45.8 billion, down 12.5 per cent or Bt6.6 billion from the same period last year.
The average net interest margin in the quarter increased from 2.49 per cent to 2.53 per cent, thanks to higher interest income in line with an increase in loans. Consumer loans - generally generating higher interest rate than other loan types - still expanded in the quarter.
Banks showed the 12.8 per cent loan growth from the same period last year, slowing down from the first quarter.
At the end of June, due to higher provisions in line with increasing loans, Thai banks' capital adequacy ratio and first-tier capital stood at 15.7 per cent and 12.3 per cent, respectively.
Non-performing loans as of June tood at Bt263.9 billion, up by Bt7.9 billion from the previous quarter. Gross NPL and net NPL stood at 2.2 per cent and 1 per cent of outstanding loans, respectively.
