, Thailand

Krung Thai Bank must brace for a tough quarter ahead: analysts

Net interest income will decline 4.5%.

Analysts at Maybank Kim Eng says this quarter will be tough for KTB. Loans will be flat from the previous quarter but due to lower NIM, net interest income will decline 4.5%. Non-interest income will also be lower from the higher base last quarter (due to extra gains in FX-related transactions).

With 1.0% increase in operating expenses, preprovision operating profit is projected to fall by 10.5%. With regard to credit quality, NPLs will surge to THB90b, a THB22.5b rise from 2Q15, mainly due to SSI loan reclassification. 

"We expect KTB to set aside THB9.3b of provision this quarter (or 47bps of credit cost). On top of the THB6b for SSI, THB2.1b is for normal provision and the THB1.2b comes from its subsidiaries. All in all, net profit is projected to be THB5b, falling 40% QoQ. Not only for this quarter, KTB is likely to increase coverage ratio going forward, putting pressure on ROEs in the next few years," adds Maybank Kim Eng.
 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.