Thai banks’ show solid gains
(10 May 2013 – Thailand) In the past four years Thai banks’ net interest margins (NIM) have remained ‘remarkably stable’ at 3 percent, according to Maybank Kim Eng.
Maybank Kim Eng said in the first quarter of this year, Thai banks produced solid earnings per share (EPS) growth of 15 percent, while loans were up 12.4 percent.
Future growth is expected to be driven by loans rather than widening margins, which have been flat at 3 percent for the past four years.
Over the past five years, pre-provision profits of Thai banks grew by about 18 percent and the first quarter of 2013 was a strong 25 percent, while bank equity was strong at 9.3 percent of assets, up from last year’s 8.9 percent.
Maybank said most importantly, returns were steadily rising for the past three years.