• TH
    • TH
  • About BOT
    • Roles & History
    • Laws And Regulations
    • Organization And Executives
    • Committee
    • Financial Reports
    • Banknotes
    • Museum
  • Monetary Policy
    • Monetary Policy Committee (MPC)
    • Monetary Policy Target
    • Schedule of Meetings
    • MPC Meeting Results
    • MPC Publications
    • MPC Knowledge
    • Economic Conditions
    • Regional Economy
    • Research and Conference Papers
  • Financial Institutions
    • Financial Institutions Policy Committee
    • Thailand’s Financial Institutions​
    • BOT Roles and Responsibilities
    • Financial Institutions Supervision in Practice
    • Financial Institutions Policy
    • Supervision of Other Financial Corporations
    • Supervisory Coordination
  • Financial Markets
    • Monetary Operations
    • Financial Market Development
    • Foreign Exchange Market
    • Foreign Reserves Management
    • Foreign Exchange Regulations
    • Thai Reference Rate and LIBOR Transition
    • Bond Investor Registration
  • Payment Systems
    • Payment Systems Committee (PSC)
    • Payment Systems Policy
    • Oversight of Payment Systems
    • Payment Systems Act
    • Oversight of e-Payment Service Providers
    • BOT's Payment System Services
    • Payment Systems Standards
    • Payment Systems Notification & Circulars
    • Cross-border Payment
    • Financial Technology
  • Research and Conferences
    • Research
    • Conferences
    • Puey Ungphakorn Institute For Economic Research
  • Statistics
    • Financial Markets
    • Economic and Financial
    • Financial Institutions
    • Payment Systems
    • Regional Economic and Financial
    • Key Economic Indicators
    • Selected Recent Developments
    • BOT API
    • Statistics Handbook

  • Home
  • > BOT News and Speeches
  • > Press
  • > 2020
BOT News and Speeches
BOT News and Speeches
  • Press
  • Speeches
​BOT Press Release No. 8/2020

Performance of the Thai Banking System in 2019

​          Mr. Tharith Panpiemras, Senior Director, Banking Supervision and Risk Assessment Department, Bank of Thailand, reported on the Thai banking system’s performance in 2019 that the Thai banking system remained resilient with high levels of capital fund and loan loss provision to withstand a potential adverse impact from economic uncertainty. Banking system’s performance improved mainly from gains on extraordinary items. Meanwhile, bank loan growth and loan quality were negatively affected by economic slowdown. Details are as follows:

          Capital fund of the Thai banking system was at 2,845 billion baht, increased from profit appropriation, a medium-sized bank’s new share issuance to support its merger and issuance of subordinated bonds, raising capital adequacy ratio (BIS ratio) to 19.6%. Loan loss provision increased by 32.4 billion baht from last year to 701.2 billion baht. NPL coverage ratio was stable at 149.9%. Liquidity coverage ratio (LCR) remained high at 187.5%.

          The banking system recorded net profit of 270.9 billion baht in 2019, up 30.8% compared to last year, mainly due to the recognition of extraordinary items from gains on sales of investment. Net interest income increased in line with the growth in retail lending. Meanwhile, net fee income slightly declined from lower fee-based income from fund transfer and securities brokerage. Overall, the return on asset (ROA) increased from 1.11% last year to 1.39%[1], while the ratio of net interest income to average interest-earning assets (Net Interest Margin: NIM) remained stable at 2.73%.

          Bank loans exhibited lower rate of growth in 2019 at 2.0% year-on-year. Details of bank loan growth are as follows:

          Corporate loans (64.1% of total loans) contracted by 0.8% from last year consequent to subdued economic conditions and loan repayment by several businesses. Large corporate and SMEloan growth (excluding financial business) contracted by 1.9% and 2.1% respectively. However, loans to small-sized enterprises (with credit line up to 20 million baht) expanded in various business types, namely wholesale and retail sales, as well as food and beverage, particularly in the second half of 2019.

          Consumer loans (35.9% of total loans) expanded at 7.5% year-on-year with slower growth in mortgage lending and auto loans. However, personal loans and credit card loans continued to grow at high level.

          On the loan quality front, the gross non-performing loans(NPLs) outstanding stood at 465 billion baht, equivalent to 2.98% of total loans. This was attributed to loan quality management through debt write-off and debt restructuring. The ratio of special mention loans (SMs) to total loans increased from 2.42% last year to 2.79% from both corporate and consumer loans.

Bank of Thailand
February 17, 2020
 

For further information, please contact: Banking Risk Assessment Division
Tel: +66 2283 5980
E-mail: BRAD@bot.or.th  

[1] In 2019, ROA and NIM after adjusting for an extraordinary item from gains on sale of investment would decline to 1.01% and 2.71% respectively.

>>​Download​​ Press & Slide PDF

Share
Tweet
Share
Tweet
About BOT
  • Roles & History
  • Laws And Regulations
  • Organization And Executives
  • Committee
  • Financial Reports
  • Banknotes
  • Museum
Monetary Policy
  • Monetary Policy Committee (MPC)
  • Monetary Policy Target
  • Schedule of Meetings
  • MPC Meeting Results
  • MPC Publications
  • MPC Knowledge
  • Economic Conditions
  • Regional Economy
  • Research and Conference Papers
Financial Institutions
  • Financial Institutions Policy Committee
  • Thailand’s Financial Institutions​
  • BOT Roles and Responsibilities
  • Financial Institutions Supervision in Practice
  • Financial Institutions Policy
  • Supervision of Other Financial Corporations
  • Supervisory Coordination
Financial Markets
  • Monetary Operations
  • Financial Market Development
  • Foreign Exchange Market
  • Foreign Reserves Management
  • Foreign Exchange Regulations
  • Thai Reference Rate and LIBOR Transition
  • Bond Investor Registration
Payment Systems
  • Payment Systems Committee (PSC)
  • Payment Systems Policy
  • Oversight of Payment Systems
  • Payment Systems Act
  • Oversight of e-Payment Service Providers
  • BOT's Payment System Services
  • Payment Systems Standards
  • Payment Systems Notification & Circulars
  • Cross-border Payment
  • Financial Technology
Statistics
  • Financial Markets
  • Economic and Financial
  • Financial Institutions
  • Payment Systems
  • Regional Economic and Financial
  • Key Economic Indicators
  • Selected Recent Developments
  • BOT API
  • Statistics Handbook
Schedule of Releases
Terms and Conditions
Personal Data Privacy Policy
Links
FAQ
Contact Us

©2015 Bank of Thailand. All rights reserved.   ( Best View with Chrome, Safari, Firefox or IE 10 (and above) )
Inquiry/Suggestion/Complaint
E-newsletter


©2015 Bank of Thailand. All rights reserved.