Thailand Banking Industry Report - H2, 2010
The Thai economy in 2010 grew at a better-than-expected rate of 7.52% despite several risk factors, including internal political unrest and imbalanced global economy. Henceforth, Thai commercial banks experienced better operating performance in line of deposits, loans, asset quality, and net profits.
In 2010, total assets held by financial institutions in Thailand stood at THB 15.21 trillion, an increase of 14.47% year-on-year. Commercial banks represented 77.25% of the banking industry, with Bangkok Bank remaining the key dominant player in term of total assets. Meanwhile, banking loans grew by 12.09% year on year to THB 8.78 trillion at the end of 2010. This increase was brought by demand recovery, both domestically and globally, prompting loan-to-deposit ratio to rise to 88.27% in 2010, from 85.83% in 2009. Furthermore, banks generally have had ample buffer capital for expected losses as capital ratios remained strong in 2010, signifying a stronger financial position for banks in Thailand.
Going forward, credit card lending will continue to register strong growth as a result of aggressive card promotional campaigns. Also, further consolidation is expected amongst the domestic financial institutions under the government’s Financial Sector Master Plan Phase II (FSMP II) (2010–2014) in an effort to enhance efficiency and competitiveness of the financial institutions system.
All major Thai banks reported improved net profits in 2010, mainly due to the combined effects of strong growth in net interest and dividend income, as well as sharp growth in non-interest income, and lower provisions as asset quality improved. Commercial banking business in 2011 is expected to continue to fare well, driven by Thailand’s strong economic fundamentals.
In 2010, total assets held by financial institutions in Thailand stood at THB 15.21 trillion, an increase of 14.47% year-on-year. Commercial banks represented 77.25% of the banking industry, with Bangkok Bank remaining the key dominant player in term of total assets. Meanwhile, banking loans grew by 12.09% year on year to THB 8.78 trillion at the end of 2010. This increase was brought by demand recovery, both domestically and globally, prompting loan-to-deposit ratio to rise to 88.27% in 2010, from 85.83% in 2009. Furthermore, banks generally have had ample buffer capital for expected losses as capital ratios remained strong in 2010, signifying a stronger financial position for banks in Thailand.
Going forward, credit card lending will continue to register strong growth as a result of aggressive card promotional campaigns. Also, further consolidation is expected amongst the domestic financial institutions under the government’s Financial Sector Master Plan Phase II (FSMP II) (2010–2014) in an effort to enhance efficiency and competitiveness of the financial institutions system.
All major Thai banks reported improved net profits in 2010, mainly due to the combined effects of strong growth in net interest and dividend income, as well as sharp growth in non-interest income, and lower provisions as asset quality improved. Commercial banking business in 2011 is expected to continue to fare well, driven by Thailand’s strong economic fundamentals.
1. INDUSTRY PROFILE
1.1 Sector Overview
1.2 Sector Size and Value
1.2.1 Total Assets
1.2.2 Total Loans and Deposits
1.2.3 Interest Rates
1.3 Sector Performance
1.3.1 Banking Profit and Los
1.3.2 Capital Adequacy Ratio (CAR)
1.3.3 Non-Performing Loan (NPL) Ratio
2. MARKET TRENDS AND OUTLOOK
2.1 Credit Card Business
2.2 Small and Medium Enterprises (SMEs)
2.2 Banking Regulations
3. LEADING PLAYERS AND COMPARATIVE MATRIX
3.1 Leading Players
3.1.1 Siam Commercial Bank PCL (SCB)
3.1.2 Bangkok Bank PCL (BBL)
3.1.3 Kasikorn Bank PCL (KBANK)
3.1.4 Krung Thai Bank PCL (KTB)
3.1.5 Bank of Ayudhya PCL (BAY)
3.2 Comparative Matrix
3.3 SWOT Analysis
4. TABLES AND CHARTS
Table 1: Commercial Banking Institutions in Thailand
Table 2: Interest Rates in Thailand (2005–2010)
Table 3: Net Profit of Nine Largest Thai Commercial Banks (Q4 2010 and 2010)
Table 4: Financial Highlights of the Leading Players
Chart 1: Thailand‟s GDP Growth Rate (Constant Prices) (2000–2011)
Chart 2: Number of Commercial and Specialized Bank Branches in Thailand (2004–2009)
Chart 3: SET Banking Index Relative to SET Index (Jan 2007–Jan 2011)
Chart 4: Total Assets by Types of Financial Institutions (2009 and 2010)
Chart 5: Total Assets of 17 Domestic Banks in Thailand as of December 2010
Chart 6: Total Loans and Growth Rate (Dec 2007–Dec 2010)
Chart 7: Loan Disbursements by Sector (2005 and 2010)
Chart 8: Growth Rate of Commercial Bank Loans (Dec 2007–Dec 2010)
Chart 9: Commercial Banks‟ Total Deposits (2005–2010)
Chart 10: Loan-to-Deposit Ratio (Dec 2007–Dec 2010)
Chart 11: Overnight Policy Rate (Mar 2006–Dec 2010)
Chart 12: Commercial Banks‟ Minimum Lending Rate (Mar 2006–Dec 2010)
Chart 13: Commercial Banks‟ Capital Ratios (Mar 2006–Dec 2010)
Chart 14: Banking System‟s Non-Performing Loan Ratio (Dec 2007–Dec 2010)
Chart 15: Credit Card Spending Value (Dec 2005–Dec 2010)
Chart 16: Credit Cards Account Growth Rate (2005–2010)
Chart 17: Credit Card Loans Outstanding (Dec 2005–Dec 2010)
Chart 18: SCB Loan Loss Coverage and NPL Ratios (2006–2010)
Chart 19: SCB Loan Growth (2006–2010)
Chart 20: BBL Asset Growth (2006–2010)
Chart 21: BBL Loans by Sector in 2010
Chart 22: KBANK Total Loans and Deposits (2006–2010)
Chart 23: KTB Loans Classified by Business Type in 2010
Chart 24: KTB Deposits Classified by Type in 2010
Chart 25: BAY Loan Growth (2006–2010)
1.1 Sector Overview
1.2 Sector Size and Value
1.2.1 Total Assets
1.2.2 Total Loans and Deposits
1.2.3 Interest Rates
1.3 Sector Performance
1.3.1 Banking Profit and Los
1.3.2 Capital Adequacy Ratio (CAR)
1.3.3 Non-Performing Loan (NPL) Ratio
2. MARKET TRENDS AND OUTLOOK
2.1 Credit Card Business
2.2 Small and Medium Enterprises (SMEs)
2.2 Banking Regulations
3. LEADING PLAYERS AND COMPARATIVE MATRIX
3.1 Leading Players
3.1.1 Siam Commercial Bank PCL (SCB)
3.1.2 Bangkok Bank PCL (BBL)
3.1.3 Kasikorn Bank PCL (KBANK)
3.1.4 Krung Thai Bank PCL (KTB)
3.1.5 Bank of Ayudhya PCL (BAY)
3.2 Comparative Matrix
3.3 SWOT Analysis
4. TABLES AND CHARTS
Table 1: Commercial Banking Institutions in Thailand
Table 2: Interest Rates in Thailand (2005–2010)
Table 3: Net Profit of Nine Largest Thai Commercial Banks (Q4 2010 and 2010)
Table 4: Financial Highlights of the Leading Players
Chart 1: Thailand‟s GDP Growth Rate (Constant Prices) (2000–2011)
Chart 2: Number of Commercial and Specialized Bank Branches in Thailand (2004–2009)
Chart 3: SET Banking Index Relative to SET Index (Jan 2007–Jan 2011)
Chart 4: Total Assets by Types of Financial Institutions (2009 and 2010)
Chart 5: Total Assets of 17 Domestic Banks in Thailand as of December 2010
Chart 6: Total Loans and Growth Rate (Dec 2007–Dec 2010)
Chart 7: Loan Disbursements by Sector (2005 and 2010)
Chart 8: Growth Rate of Commercial Bank Loans (Dec 2007–Dec 2010)
Chart 9: Commercial Banks‟ Total Deposits (2005–2010)
Chart 10: Loan-to-Deposit Ratio (Dec 2007–Dec 2010)
Chart 11: Overnight Policy Rate (Mar 2006–Dec 2010)
Chart 12: Commercial Banks‟ Minimum Lending Rate (Mar 2006–Dec 2010)
Chart 13: Commercial Banks‟ Capital Ratios (Mar 2006–Dec 2010)
Chart 14: Banking System‟s Non-Performing Loan Ratio (Dec 2007–Dec 2010)
Chart 15: Credit Card Spending Value (Dec 2005–Dec 2010)
Chart 16: Credit Cards Account Growth Rate (2005–2010)
Chart 17: Credit Card Loans Outstanding (Dec 2005–Dec 2010)
Chart 18: SCB Loan Loss Coverage and NPL Ratios (2006–2010)
Chart 19: SCB Loan Growth (2006–2010)
Chart 20: BBL Asset Growth (2006–2010)
Chart 21: BBL Loans by Sector in 2010
Chart 22: KBANK Total Loans and Deposits (2006–2010)
Chart 23: KTB Loans Classified by Business Type in 2010
Chart 24: KTB Deposits Classified by Type in 2010
Chart 25: BAY Loan Growth (2006–2010)
