Thai Banks loans continues to grow in August

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


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