The 10 SET-listed banks reported a combined net profit of 126.4 billion baht for the first half of this year, marking a 3.7% increase year-on-year. This growth was primarily driven by large banks, while smaller banks experienced a decline in earnings.
Four out of the 10 financial institutions posted better net profits in the first half of 2024 compared to the corresponding period last year.
TMBThanachart Bank (ttb) led the industry with the highest growth rate of 20.6%, achieving a net profit of 10.6 billion baht in the first half, up from 8.86 billion baht in the same period last year.
In a statement to the Stock Exchange of Thailand, in light of economic headwinds and challenging prospects ttb reaffirmed a prudent business strategy focused on selective loan growth and liquidity recycling to achieve risk-adjusted returns while safeguarding the bank’s financial position.
Additionally, cost management was highlighted as a key factor in improving results.
Conversely, Kiatnakin Phatra (KKP) reported the industry’s lowest result, with a net profit of 2.27 billion baht in the first half, down 34.9% from 3.49 billion baht in the same period in 2023. This decline was attributed to lower net interest income amid slower loan growth.
KKP’s auto hire-purchase loan portfolio was impacted by a 23.8% year-on-year decline in the auto industry during the first five months of 2024.
Commercial and passenger car sales fell by 27.1% and 17.9% year-on-year, respectively, during the period, due to unfavourable economic conditions, higher interest rates and a high rate of household debt.
Kris Chantanotoke, chief executive of Siam Commercial Bank (SCB), a subsidiary of SCB X, said the bank has been cautious in its operations since the beginning of the year, aligning with the economic environment and higher credit risk in certain customer segments.
“We anticipate greater economic challenges in the second half of this year, necessitating strong risk management. The bank continues to adhere to best practices,” said Mr Kris.
Despite concerns about asset quality deterioration among vulnerable customers, SCB aims to manage non-performing loans (NPLs) effectively throughout the year.
SCB has also set a marginal loan growth target for this year under a selective strategy to control asset quality.
On average, major local banks set a 2024 loan growth target in a range of 3-5%. However, the country’s six domestic systemically important banks (D-SIBs) booked a loan contraction in the first six months of the year.
The D-SIBs, which comprise Bangkok Bank, Krungthai Bank, Kasikornbank, SCB, Bank of Ayudhya and ttb, recorded total outstanding loans of 13.4 trillion baht as of June, down 0.11% from 13.5 trillion baht as of December 2023.
Bangkok Bank (BBL), the country’s largest bank by total assets, achieved the highest loan growth among the D-SIBs at 1.8%, in contrast to the flat or marginal contraction observed among its peers.
