Siam Commercial sees flat growth in bad loans

The lender attributes improved economy to help debtors repay. 

Despite its aggressive loan expansion, Siam Commercial Bank expects flat growth of its non-performing loan rate through a new management structure and the country's positive economic outlook.

The improved economy improves the ability of customers to repay debt, said the bank's chairman of the executive committee Vichit Surapongchai.

"Generally, bad debts increase in line with loan growth, but the bank hopes to lower its NPL ratio as the economy grows," said Dr Vichit.

SCB's gross NPLs are worth 41.02 billion baht ($1.37 billion) or 4.13% of total outstanding loans.

It is the country's fourth-largest bank in terms of asset size and recently restructured its core businesses from a wide swath to four key segments: wholesale banking, small and medium-sized enterprises, retail banking and a special assets group. The restructuring is expected to be complete early next year.

View the full story in Bangkok Times.