Ten SET-listed banks delivered loan progress through the first 4 months of the yr, because of brisk wholesale lending and an extra credit score line offered below the debt reduction scheme, even because the financial system reeled from the pandemic.
Within the January-to-April interval, the 10 industrial lenders noticed their loans excellent rise by 3.9% from the top of final yr and 5.9% on the identical interval a yr earlier to 11 trillion baht, in line with filings with the Inventory Alternate of Thailand.
Krungthai Bank (KTB) recorded the largest loan progress in each year-on-year and sequential phrases at 10.8% and eight.3%, respectively, to three.04 trillion baht on the finish of April.
Kiatnakin Bank was within the second spot, delivering 10% and 6.8% will increase from a yr earlier and the top of 2019 to 246 billion baht on the finish of April.
CIMB Thai Bank (CIMBT) noticed whole loans leap 9.6% from a yr earlier and 5% from the top of final yr to 233 billion baht on the finish of April.
On the opposite finish of the dimensions, whole loans at TMB Bank (TMB), Land and Homes Bank (LH Bank) and Tisco Bank (Tisco) on the finish of April dropped from a yr earlier and the top of December.
LH Bank’s loans excellent fell by 3.7% from a yr earlier and 1.2% from the top of 2019 to 150 billion baht, Tisco’s shrunk 3.3% and three.8% to 224 billion baht and TMB’s dipped 1.9% and 0.4% to 644 billion baht in the identical interval.
The Bank of Thailand stated lately that industrial loan progress may very well be attributed to switching to monetary establishment lending based mostly on bond issuance for some firms amid volatility within the debt instrument market.
For gross dangerous loans, combination non-performing loans (NPLs) spiked to 454 billion baht on the finish of April from 415 billion baht on the finish of final yr and 426 billion baht on the finish of December.
By way of ratio, CIMBT had the very best NPLs at 5.14% of loans excellent on the finish of April, in contrast with 4.32% a yr in the past and 4.59% on the finish of 2019.
KTB’s gross NPL ratio was 4.27% on the finish of April, down from 4.48% a yr earlier and 4.33% on the finish of final yr.
LH Securities stated in a analysis paper that KTB’s robust loan progress was largely supported by authorities loans and long-term company loans.
Increased state spending to blunt the financial blow from the pandemic was a boon to KTB’s loan progress, the securities dealer stated.
On Monday, KTB president Payong Sriwanich stated the bank supplied 596 billion baht in credit score traces by debt restructuring and tender loans to 171,727 clients, of which 90% have been people and small and medium-sized enterprise (SME) debtors.
In the meantime, Kasikorn Analysis (Okay-Analysis) stated monetary help measures to melt the influence of the outbreak would help loan expansions for the banking business within the second quarter of the yr.
Okay-Analysis forecasts 17 banks to ship loan progress of 5-6% from the top of 2019 throughout April to June, up from 4% within the first three months of the yr.
The analysis home stated company firms are re-prioritising their funding sources to bank lending from bond issuance, whereas debt restructuring can be provides a lift to banks’ loan progress.
The financial downturn is pushing up NPL ratios within the second quarter from 3.05% within the first quarter, in line with Okay-Analysis.