Thai banks' earnings to rebound to 15% in 2017: Credit Suisse

But loan demand is unlikely to accelerate.

According to Credit Suisse, earnings of Thai banks are projected to rebound to 15% next year after falling 13% in 2015 and 1% in 2016E. "Thailand was the first country to enter into a downturn in 2013 and is likely to be the first one out of the door on credit costs next year, in our view."

However, Credit Suisse says loan demand is anaemic and will likely not accelerate much next year due to lacklustre GDP growth amid high household debt and the corporate sector's lack of investment.

"Banks have managed net interest margins incredibly well and there has been a minimal impact of the unilateral 25 bp lending rate cut of early April. So, overall, ROEs should recover towards mid-teens from next year after a deceleration from high teens in 2012-13 to low-teens in 2016."

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