Thai banks' earnings expected to fall 3%

Blame it on lower margins and high provisions.

Maybank Kim Eng analysts expect the nine banks under their coverage to report a 3% QoQ decline in aggregate net profit for 2Q17 due to lower margins and high provisions (especially big banks).

"The market’s focus will be on the impact from the lending rate cut in May and the NPLs of big banks, especially those with exposure to EARTH."

Here's more from Maybank Kim Eng:

The market’s attention will turn to two issues. First, to what extent the commercial banks’ lending rate cut in May will affect their interest margins. With soft loan growth, non-interest income may have remained weak overall (expect +0.5% QoQ).

Second, after disappointing NPL numbers reported for 1Q17, the market should remain focused on this issue. Unfortunately, we expect KTB/KBANK/BAY to classify THB17b of EARTH loans as NPLs in 2Q17, driving the sector NPLs up to 3.78% (+12bps from 1Q17).

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

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!

I want to download the media kit