On Nov 2, we hosted a virtual conference with TTB executives. TTB anticipates retail-driven loan growth for this year. Funding costs won’t rise much, as the interest rates on CASA deposits will remain flat. We expect digital banking to propagate long-term growth.
Loan growth ready to resume
On Nov 2, we hosted a virtual conference where TTB executives, Mr Naris Aruksakunwong (Chief of Strategy) and Ms Dararat Urapanthamat (Chief of IR), addressed local investors. The bank is now ready to resume building organic business, as it has completed consolidating TBANK into its operation, launched a new digital platform, and its asset quality is good. Moreover, TTB has set management overlay and cleared NPLs by writing them off. Hence, we expect YoY loan growth of 3.5% in 2022 and 2.5% in 2023, driven by retail business. Note that TTB’s loan portfolio declined 1.6% YoY in 2021 and was flattish YoY in 2020, as it focused on asset quality (managing NPLs and its credit cost) and merging the two banks (its loan portfolio jumped 103% in 2019 with the financial consoli-dation of TBANK).