#TISCO Securities #Thailand Stocks – Broker BBL expects loans to grow well and credit costs to be stable.
The risk of lowering the policy’s interest rate has decreased. Management expects the Bank of Thailand to maintain the policy interest rate at the current level throughout the year. This is due to the voting share and voting behavior of the Monetary Policy Committee. Although the Bank of Thailand will reduce the policy interest rate There will be less impact on the transmission mechanism because commercial banks have already reduced the MRR rate, which will further reduce the impact on the net interest income margin (NIM), which has decreased more due to 1) more deposit movement. (through a special deposit campaign) because it is expected that the demand for loans will increase in the future. (Executives are starting to see an improvement in loan demand.) 2) There were many new loans at the end of the quarter, resulting in a decrease in overall NIM, and 3) Most of the new loans came from large, well – established corporate groups Although demand for SME loans with higher interest rates has slowed, not all home loans are based on MRR rates.
For the full year 2024 the target NIM rate of 2.8% is still achievable. Although there are a number of downside risk factors such as a reduction in bond yields. Asset Bank’s interest rate reduction policy and asset management strategies A 10 percent increase in non-performing loans (NPLs) is just a downgrade in quality. Debtors are still able to repay their debts As usual, credit costs in 1Q24 reached 127 bps (compared to the target of 90-100 bps) due to high levels of credit expansion This will be at the company’s target level Therefore, quarterly numbers are likely to decrease in the coming quarters.
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#Broker #BBL #expects #loans #grow #credit #costs #remain #stable
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