BBL maintains 4-6% FY19 loans growth target, expects credit cost drops to 1% vs 1.08% FY18 from lower LLP yoy on improved assets quality, eyes more fees from bancassurance & mutual funds business.

Comment: Banks in Thailand just have massive industry structural issues. Unless they can figure out a way to expand regionally like the Singaporean and Malaysian banks have done then you’re just not going to see any decent figures coming out of them

ITEL upbeats 2Q earnings from recognition of Bt5.7b backlog from government broadband projects (USO phase 2), will sign 2 contract in June including CCTV network projects for BKK Metro Admin worth Bt60m & 3,140 km fiber optic projects for Provincial Electricity Authority (PEA) worth Bt210m (70% holding in JV), firms on 40% revenue growth target.

Comment: They used to be in the news heavily back when the government had several underground broadband projects in the works, all of which had been postponed. 

QH sees healthy 2Q from strong SDH transfer, target 10 new projects 2H, eyes 10% full year sales growth, 8-10% revenue growth target.

SINGER reaffirms solid turnaround from home appliance sales on strong demand for air con and growth from auto loans and hire purchase business, will add 15 branches this year from current 185 outlets.

Comment: I am surprised by this given how weak the economic conditions are in Thailand. Perhaps its purely from a low base 

THAI expects Transport ministry to seek cabinet approval for 38 aircrafts order worth Bt150b after estimate new form government.

TMB target SMEs new loans +60% yoy >Bt27b after 1Q jumps 40% yoy, sees improved assets quality following stringent credit screening.

Comment: That’s an aggressive target set by TMB, if it works out, watch their NIMs explode

  1. peter satrapa-binder

    @ thai banks and their stocks: i’d be really careful about them, i think their big issue in the not-so-far future will be rising NPL’s… more than already reported in the news.

    • Its the lack of growth in mortgages that will hurt the banks more than anything else. Thailand is aging, and the retail portion of their loans is going to simply decrease over time.

      NPLs have been an issue for years and they’ve hidden this well through provisioning and delaying the use of IFRS9 which as a friend said “SCB’s entire SME loan book would be considered an NPL”

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