Thailand

KrungThai Bank's non-performing assets could reach as much as US$1bn in 2H16.

NPLs had risen to 3.6% in 1H16.

Investment gains also declined 97%.

It may prove disruptive to banks.

The bank's NPLs fell by 22bps in 1Q16.

Kasikorn Bank will bear the brunt of the impact.

It has also opened its first branch in Vietnam.

It's eyeing HNWIs and entrepreneurs.

It’s the first Myanmar bank to have an international office.

It was raised from 170bps to 190bps.

NPL declined by USD111m in 1Q16.

The increase seems broad based, analysts say.

It's a rare feat for Thai banks.

NPLs could rise 3.3 this month. Maybank Kim Eng analysts attended the 1Q16 results preview meeting held for analysts last Friday. Based on what they learnt from the meeting, they project 1Q16 net profit about THB8.9b, which is down 28% YoY but up 63% QoQ (4Q15 reported results were depressed by heavy expensing). "Regardless, 1Q16 profit is likely to be viewed as weak compared to the historical standard. One should not be surprised to see a rise in NPLs (+23bps to 3.30%) and high credit cost (2.20%), as previously guided in 4Q15. The company will report its full results on 20th April."

The guarantee is worth THB1.78 billion.

The deterioration in asset quality can be seen as Thai commercial banks’ non-performing loans surge.