Analysts have been sending me this table most of today with the headlines that Thai Bank’s loan growth has been slowing in the month of August but a MoM growth of +1.0% for the whole sector isn’t bad.

Based on the figures this is what I see:

  • The Small financial institutions (KK and TISCO) have grown their deposit base massively  this year in order to fund their loans to the auto sectors and SMEs to a certain extent.
  • The same goes for the commercial institutions such as SCB, BAY and TCAP
  • Across the board loan to deposit ratios for the sector are below 1x – very safe figures
  • August is seasonally a slow month with most of the world on holiday thus to still see a +1.0% for the month isn’t too bad
  • Thus overall I still think the Thai banking sector is in very good condition, low LDR ratios, a good loan growth, plus their income tax drops from 30% in 2011 to 20% by 2013. Put this all together and they generally are still no brainer investments


Disclaimer: Do your own research, use your own brains and read the disclaimer for the rest of the legal babble, thank you!

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