Bangkok Bank's first-quarter profit drops nearly 12 pct as bad debt surges

BANGKOK: -- Bangkok Bank Pcl, Thailand's top lender by assets, reported an 11.6 percent drop in first-quarter net profit, from a year earlier, on Tuesday as a surge in bad debt prompted it to book higher loan loss provisions.

Net profit at 8.32 billion baht ($239 million) for the January-March quarter was however slightly higher than an average forecast of 8.25 billion baht in a Reuters poll.

Profits rose 8.3 percent from the previous quarter, the bank said in a statement.

Full story: http://www.reuters.com/article/bangkok-bank-results-idUSL3N17M30L


-- Reuters 2016-04-20

Keep giving out credit cards like they were candy and your profits will drop.

Oh Boy. Here comes that Thai debt.

Finally

This possibly proves that the government and TAT that paints a very rosy picture of Thailands economy are VERY wrong.....

"11.6 percent drop in first-quarter net profit, from a year earlier,"

but, i only pull most of my money out, not all of it

Surprise only 12% when Thai's use there credit cards on everything to try and look high so when basically they cant afford it .. Personally feel sorry the kids they may have because they will be footed the bill for the rest of there life plus there too it's a vicious cycle they put themselves in ..

Madness when you look at this too Household debt expected to remain above 80% of GDP

The level of household debt this year is expected to continue to exceed 80 per cent of gross domestic product even though some people who borrowed to take advantage of the previous elected government’s first-car scheme will pay off that debt in the fourth quarter. Thanyalak Vacharachaisurapol, head of money and banking at Kasikorn Research, said household debt this year would touch 83 per cent of GDP, against 81 per cent at present, because consumer borrowing has continued to rise.

http://www.nationmultimedia.com/business/Household-debt-expected-to-remain-above-80-of-GDP-30279815.html

More craziness and what 12 months can in Thailand with car and housing debt ..

Debt-ridden Thailand being sucked into whirlpool of deflation Disinflation - or negative inflation - has hit Thailand for the past five months in a row. In the first quarter of this year, inflation was minus-0.5 per cent. The situation worsened in April, with inflation at negative-1.04 per cent. In May the disinflation surged to -1.27 per cent, prompting growing concern as to whether deflation is waiting on the horizon.

While disinflation is a temporary phenomenon of price decline, deflation represents a general collapse in prices and demand, aggravated by a lack of fresh investment and a marked slowdown in the velocity of money (its speed of circulation).

http://www.nationmultimedia.com/opinion/Debt-ridden-Thailand-being-sucked-into-whirlpool-o-30261656.html

Edited April 20, 201610 yr by Nicolas32

They dish out loans and cards to people who have no hope of every paying for them. Mortgages are granted to people not earning enough to feed themselves properly because they use different family members names to get them; the result of that is all those properties you see listed in just about every bank you walk into.

In the next year or two the economy is going to implode

Keep giving out credit cards like they were candy and your profits will drop.

That is to Thai people who do not have a pot to ---- in ,but a falang with a million or so in the bank and only wants one to buy stuff online "no can have"

They dish out loans and cards to people who have no hope of every paying for them. Mortgages are granted to people not earning enough to feed themselves properly because they use different family members names to get them; the result of that is all those properties you see listed in just about every bank you walk into.

In the next year or two the economy is going to implode

So true and that why property market has become flood with condos and houses and hard to sell and yet stuff is still being built when they should be stopping and following the Chinese and South Koreans to places like Cambodia Burma and Vietnam and building new projects where there are making more money and why so many companies have moved there offices out of Bangkok even in China and Hong Kong now the Thais are trying to dump condos to these people you know but i can see its like pissing in the wild to be fair and the junta isn't helping with there heavy handed tactics and i can see a repeat of 97 /98 ..

Edited April 20, 201610 yr by Nicolas32

I have noticed that companies like BBK bank in Thailand is reporting profits the same as companies in the west do. Profits are down dramatically but no not down they are up because they are higher than economists

estimate. Economists are throwing out low ball numbers that companies can easily beat but figures that are lower than the last quarter so its not really a drop in profits its an increase and viola their stock goes up in price.

Edited April 20, 201610 yr by elgordo38

Are they finally starting to wright off the 1997 bad debts. The building developments they

have kept on the books at full value are starting to crumble.

loans running at 80% of GDP does not really paint a true picture of the amount of debt taken on by Thais, as this is only the recorded institutional loans,

there is an unknown massive amount of debt undertaken by the shadow banking system to also be taken into the equation,

80% of GDP, more likely to be 150% of GDP.

loans running at 80% of GDP does not really paint a true picture of the amount of debt taken on by Thais, as this is only the recorded institutional loans,

there is an unknown massive amount of debt undertaken by the shadow banking system to also be taken into the equation,

80% of GDP, more likely to be 150% of GDP.

Well there seem to be plenty of buyers of that THB denominated debt:

http://www.bloomberg.com/news/articles/2016-04-18/juntas-haircuts-and-donations-can-t-put-funds-off-asean-bonds

I'm not trying to stir the pot but from last I heard, insurance of funds is dropping and the banks will insure for only 1 million baht. If you have more than that and the bank has a problem.... Understand?