Equity Analysis /

Thailand: Bank - Loans grew 0.5% MoM in July

  • BBL, KBANK, and KKP topped lending growth for July

  • 3Q22 earnings projected to rise 21% YoY but dip 3% QoQ

  • 2022 Bank coverage earnings projected to rise 14% YoY

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
25 August 2022

We forecast a 2022 Bank coverage (eight banks) aggregate profit of Bt204.3bn, up 14% 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 KBANK are our top picks.

BBL, KBANK, and KKP topped lending growth for July

Our Bank coverage’s (eight banks) aggregate net-lending for July rose by 0.55% MoM (versus a mean decline of 0.1% MoM for the past five years) and 2.5% YTD, supported by loan drawdowns at several big banks (particularly at KBANK and BBL). BBL, KBANK, and KKP posted the strongest MoM net-lending increases of 1.4%, 1.1%, and 1.0%, respectively, while SCB, TISCO, KTB, and TTB marked MoM growth of 0.4%, 0.3%, 0.1% and 0.1%, respectively. In contrast, BAY reported a MoM net-loan contraction of 0.02%.