Equity Analysis /
Thailand

Thailand: Bank - Loans grew 0.3% MoM in April

  • BBL, KKP, and TTB topped lending growth for April

  • 2Q22 earnings projected to dip by 2% YoY and 5% QoQ

  • 2022 aggregate Bank coverage profit forecast to rise 11% YoY

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
23 May 2022

We forecast a 2022 Bank coverage aggregate profit (eight banks) of Bt198.8bn, up 11% YoY. The drivers are lighter LLPs and lending expansion. KKP, KBANK, and BBL are projected to achieve the strongest 2022 loan growth. We have an OVERWEIGHT sector call. BBL and KKP are our top picks.

BBL, KKP, and TTB topped lending growth for April

Our Bank coverage’s (seven banks excluding SCB) aggregate net-lending for April rose by 0.3% MoM (versus mean growth of 0.7% MoM for the past five years) and 1.1% YTD, supported by loan drawdowns at several big banks. BBL, KKP, and TTB posted the strongest MoM net-lending increases of 1.1%, 1.1%, and 0.4%, respectively, while KBANK and KTB marked MoM growth of 0.3%, and 0.0%, respectively. In contrast, BAY and TISCO reported MoM net-loan contractions of 0.5% and 0.4%, respectively.