On January 22, 2019, a report from the Stock Exchange of Thailand (SET) revealed that 11 commercial banks have completed their financial results for the year 2018. The total net profit for 2018 reached 209,086 million baht, an increase of 15,917 million baht compared to the same period in 2017, which was 193,169 million baht. The accumulated non-performing loans (NPL) stood at 426,835 million baht. Despite the impact from the waiver of fees for digital financial transactions, which led to a decrease in net fee and service income, the positive factor of increased loan growth contributed to a rise in net interest income, along with a reduction in provisions for doubtful debts.

 

          The top five commercial banks with the highest profits in 2018 were: Siam Commercial Bank at 40,068 million baht, Kasikorn Bank at 38,459 million baht, Bangkok Bank at 35,330 million baht, Krung Thai Bank at 28,491 million baht, and Krungsri Bank at 24,800 million baht. The top five banks with the highest accumulated NPLs in 2018 were: Krung Thai Bank at 102,367 million baht, Bangkok Bank at 79,279 million baht, Kasikorn Bank at 72,346 million baht, Siam Commercial Bank at 69,383 million baht, and Krungsri Bank at 32,284 million baht.

          According to a report from Bangkok Bank, it is anticipated that the Thai economy will slow down in 2019 due to the global economic slowdown stemming from uncertainties in U.S. trade policies and retaliatory measures from trading partners. However, ongoing government policies and infrastructure investments, such as the Eastern Economic Corridor (EEC) development project, will boost private sector confidence, promoting domestic investment and potentially attracting foreign companies to relocate their production bases to Thailand. The bank aims to maintain growth through prudent financial management while ensuring liquidity and capital levels are sufficient to support future business expansion and potential uncertainties.


          Mr. Prabhand Anupongong, CEO and Managing Director of Thanachart Bank, stated that the bank and its subsidiaries continued to grow in 2018, achieving a net profit of 14,703 million baht. This growth was driven by product and service development that met customer needs, resulting in a 5.53% increase in net interest income from a 5.88% growth in loans, particularly in auto loans, which grew by 13.44%. However, non-interest income decreased by 2.95%.


          Mr. Payong Srivanit, CEO of Krung Thai Bank, reported that the banking group experienced a 4.4% growth in total loans compared to the end of the previous year, driven by continuous growth in retail loans, including housing and personal loans. Loans to government and state enterprises continued to grow, while loans to small and medium-sized enterprises (SMEs) and large businesses also increased. The NPL ratio at the end of 2018 was 1.94%, up from the previous year, primarily due to increases from certain SME sectors and a result of strict quality classification policies.

 

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