Thailand's big four banks see profits dip for first time in two years

Nonperforming loans increase while lending remains slow

YUKAKO ONO, Nikkei staff writer

 

File photo

 

BANGKOK -- Thailand's big four banks posted a combined net profit decline for 2017, the first time they have done so in two years, as nonperforming loans increased, according to earnings reports released by Monday.

 

The Thai economy is projected to have expanded by around 3.4% in 2017, primarily due to a strong rebound in exports. But sluggish private investment recovery has seen loan growth at the four banks hover at a mere 4%.

 

Combined net profits of Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikornbank came in at 132.944 billion baht ($3.98 billion) for the year ending Dec. 31, down 12.5% on the year.

 

Full story: https://asia.nikkei.com/Business/Trends/Thailand-big-banks-profits-dip-for-first-time-in-two-years

 

-- NIKKEI ASIAN REVIEW 2018-01-23

My jam tin account is doing very well, thank you very much! Interest on a par with the big banks.

Bitcoin?

9 minutes ago, dorchester said:

Bitcoin?

I don't think so, that's performing even worse.

regards Worgeordie

And my bank has already implemented a massive rise in charges and commission to transfer funds from own a/c to own a/c in next province.

 

What they should do is rationalize their staffing and other aspects of their operating costs. I go into one branch on Ram. road fairly often, normally 2 staff standing either side of the door yelling sawasdee kha to every customer in and out plus 2 staff operating the queue machine.  

 

 

 

"as nonperforming loans increased"

 

They're up to their eyeballs in toxic debt.

 

 

 

 

2 minutes ago, Enoon said:

 

"as nonperforming loans increased"

 

They're up to their eyeballs in toxic debt.

 

 

 

 

Their eyeballs must be in their feet then because NPL's are only 2.97%.

 

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=794&language=ENG

1 hour ago, webfact said:

Combined net profits of Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikornbank came in at 132.944 billion baht ($3.98 billion) for the year ending Dec. 31, down 12.5% on the year.

OMG   

Good. Useless lot. 

It's my understanding that BOT has increased the reserves each bank must set aside for NPL's, that is not to suggest that NPL's have increased by that amount, it's purely a contingency issue.

Went to the atm of Bangkok Bank yesterday but it wouldn't give me any cash...i was over the limit already it said, didn't use my bankcard for many weeks...went to another bank and just got it without any issue.

 

Have used Bangkok bank for many years but now i will never go back.

It's coming. The financial crash. We can see it, but they carry on blindly, building a world of concrete, pick ups and debt 

6 hours ago, webfact said:

But sluggish private investment recovery has seen loan growth at the four banks hover at a mere 4%.

As anticipated after the first quarter of 2017:

• "personal loans expected to expand just 3% to 5% this year, because domestic purchasing power has not yet recovered, and spending remains slow."
• "banks and non-banks have also tightened their lending criteria in a bid to keep their nonperforming loans low with loan approval rates standing only at 30%." 

http://englishnews.thaipbs.or.th/banks-tighten-lending-keep-non-performance-loans-low/

The real story behind the article is that despite the government's insistence that economic growth reflects increasing private investment, the banks have known the truth - economic growth is being fueled largely by government borrowing. Even foreign government loans appear to have been mostly from China and Japan.

 

Lent money to dodgy people. Some big write offs looming?

7 hours ago, scorecard said:

And my bank has already implemented a massive rise in charges and commission to transfer funds from own a/c to own a/c in next province.

 

What they should do is rationalize their staffing and other aspects of their operating costs. I go into one branch on Ram. road fairly often, normally 2 staff standing either side of the door yelling sawasdee kha to every customer in and out plus 2 staff operating the queue machine.  

 

 

 

And another branch of same bank further along Ram. road, often 3 to 4 banking staff standing around chatting and basically ignoring the incoming / waiting customers whilst the maid asks what each customer wants and ensures they get a correct q ticket and gives them the deposit / withdrawal etc etc forms to complete .

 

I have 2 thai bank accounts, but rarely use them. It is cheaper to get my money from an ATM (Aeon) than an interbank transfer from back home. And no real benefits of a Thai account, just use it to park spare money temporarily. My banks in the UK do not charge me for having an account, give me free cards, and pay better rates of interest.

On ‎23‎/‎01‎/‎2018 at 2:18 PM, webfact said:

"sluggish private investment"

Big Thai private investors are too smart to waste their investment funds in Thailand. They smell a downward spiral in the local economy and know of better places to place their money. It is not in Thailand but it is in Vietnam, Cambodia and Myanmar where GDP growth is far in excess of that of Thailand.

Incompetent military economists are enough to frighten anyone away.

 

Bangkok Bank tellers charge me a small fee to deposit money into my savings account. I am sure that fee goes straight into the purse or hip pocket. So I intend to close my account of 10,000 baht next month. This could have a crippling effect on their economic future.