, Thailand

Bangkok Bank eyes 5-7% loan growth in 1Q

But it could get worse.

According to Maybank Kim Eng, Bangkok Bank still targets loan growth at 5-7% (vs our forecast of 6%) with 2.2-2.3% NIM (Our forecast: 2.23%) and 10% fee income growth (Our forecast: 9%). However, the bank forecasts only 3-5% loan growth if there is no improvement in the political situation. NPLs increased slightly from the small SME segment in 1Q14.

Here's more:

However, the overall asset quality remains good. The bank plans to set aside loan loss provisions of THB8.0-8.5bn this year vs our forecast of THB8.1bn (0.45% credit cost).

What’s Our View 1Q14F result preview. Loan growth should be flat QoQ. We expect NIM to drop 3bps QoQ to 2.2% due to the policy rate cut in 1Q14. Non-interest income should grow slightly, thanks to the strong fees from banassurance and mutual fund which could offset the weak loan related fee. OPEX is expected to drop 7% QoQ because of the on-going cost control. 

Focus on loan yield rather than growth. Loan growth should grow at faster rate in 2H14 assuming there a functional government will be in place. We expect NIM to improve in 2Q14 due to the lower deposit competition. We believe that the bank will focus more on pricing/ yield more than the asset growth this year.

 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!