Commercial bank loans in 1Q24 grew by 0.7%.

Bangkok, Commercial banks in the 1st quarter of 2024 had a net profit of 68,000 million baht, expanding 14.7% and growing 28.7%. Loans expanded 0.7%. The Bank of Thailand (BOT) revealed the overall picture of Thai commercial banks in the first quarter of 2024. The commercial banking system is stable and stable. It has a high level of capital, reserves, and liquidity. With a net profit of 68,000 million baht, expanding 14.7% and growing 28.7% compared to the previous quarter. Loans to the commercial banking system in the first quarter of 2024 returned to expand slightly at 0.7 percent from the same period last year. from large business loans in the industrial sector especially food Petroleum and chemicals Meanwhile, consumer loan growth slowed down in almost every portfolio. Except for auto loans, which continue to shrink. The outstanding balance of non-performing loans (non-performing loan: NPL or stage 3) in the first quarter of 2024 increased to 502.6 billion baht, representing a ratio of NPL to total lo ans at 2.74 percent, increasing mainly from business loans (which was partly a result of arranging qualitative layer) and home loans Meanwhile, commercial banks continue to manage debt quality and provide assistance to debtors. The proportion of loans with a significant increase in credit risk to total loans (significant increase in credit risk: SICR or stage 2) was 6.13 percent, increasing from the previous quarter. Part of which is the debtor who is still able to pay the debt according to the contract. But they are classified qualitatively. For the first quarter of 2024 operating results improved from the previous quarter. Mainly from operating expenses and reduced reserve costs Meanwhile, net interest income decreased due to increased deposit costs, resulting in the Net Interest Margin (NIM) of the commercial banking system decreasing. However, the debt repayment ability of small SMEs and certain groups of households still needs to be monitored. which still has a fragile financial position due to slow recovery of income This is expected to result in NPL gradually increasing. But it is still at a manageable level and has not increased exponentially (NPL cliff). The ratio of household debt to GDP in the 4th quarter of 2023 has slightly increased from the previous quarter. Meanwhile, the business sector's debt-to-GDP ratio was stable due to the economy gradually recovering and debt creation accelerating slightly. Overall profitability continued to improve from the previous year. but decreased from the previous quarter from The production and export sectors have slowed down, while some service sectors still face pressure from costs that remain high. While the progress of Responsible Lending (RL) measures implemented since 1 January 2024, the BoT is closely monitoring the progress of the project. There were a total of 3.71 million accounts receiving assistance, with the total debt burden receiving assistance amounting to 0.92 trillion baht. Meanwhile, for debtors with chronic debt problems (PD), it was fou nd that there were a total of 1.33 million accounts of debtors who began to have chronic debt problems. The total debt burden is 60,882 million baht. As for chronically indebted debtors, it was found that there are a total of 0.48 million accounts with a total debt burden of 14,433 million baht, with the BoT following closely. which if there is little participation BoT will talk with debtors who do not understand what the cause is. And will there be additional measures adjusted or not during the third quarter of 2024? . Source: Thai News Agency