War 'deposit' scolds
Bank of Thailand to open battle Thailand Economic Outlook Expected to grow 4.2% TMB Analytics 'Reveals' Stronger Deposits and Loans New NPL formation trend will decline this year.
Mr. Naris Setthamdecha Executive Director TMB Analytics Economic Analysis Center Revealed with iMart News (www.iclicknews.com) The Thai economy is expected to grow 4.2% over the previous projection. On the strength of all economic components that have continued over the past year. In addition, the banking business is expected to improve continuously. Credit and deposit growth has improved, while NPL has already reached its peak in the year 60. And the trend towards new NPLs is likely to decline in 61.
TMB Analytics forecasts the Thai economy to grow at 4.2%, up from a previous estimate of 3.8%, in line with stronger global economic growth and stronger Thai economic sentiment. The previous year. "In the global economic recovery, support for global trade. The global demand for goods is projected to grow 4%, boosting Thai exports to a 4.8% growth, even as a slowdown from the previous year, partly due to high base. On average, the value of exports is at least $ 20.7 billion a month, which is higher than many years ago. It is growing in all major markets and commodities. Even the Chinese market, the expansion of the economy is not hot. However, it is expected that the export of financial markets. It is expected that the policy rate will gradually increase from 1.5% to 2.0% in the year of 2006, in line with the improving Thai economy and rising world interest rates.
"Deposits are expected to grow by 5.5%, down from the previous forecast of 5.9% on the back of deposit growth of only 4.3%. The rate of interest is 2 times in 61 years. It is expected that the liquidity of banks will be slightly tightened. However, when looking at the overall liquidity of the country. We still have liquidity of over 12 trillion baht, "Naris said.
Credit quality We see the NPL ratio of total loans has peaked in the past year. The NPLs are likely to decline in 2009, with 82% of NPLs in SME loans and retail loans. The formation of NPL (NPL Formation) is also likely to decline in the manufacturing and trading industries as well. Financial Markets It is expected that the policy rate will gradually increase from 1.5% to 2.0% in the year of 2006, in line with the improving Thai economy and rising world interest rates.
Mr. Naris added that the performance of commercial banks in the year 61 is likely to improve. "The overall loan growth is expected to grow by 5.3%, down from the previous forecast of 5.7% on loan growth of only 4% in FY2006. Credit growth comes from the growth of large businesses. Led by the construction business that has benefited from infrastructure investment. The SME sector and retail banking sector are gradually recovering. In terms of consumer loans. Hire-purchase loans will gradually improve from the first car unlock. However, negative factors from low agricultural income remained. A clear recovery of the global economy. This leads to a reduction in monetary policy. Existing financial liquidity from the injection of money or QE of central banks, major economies tend to decline. Followed by a gradual increase in policy rates. And the rise of US bond yields. As a result, the cost of borrowing is likely to increase. However, despite the US policy rate hike this year. We expect 3 times, but we still see capital inflows in the region. In line with the strong regional economic fundamentals, including the Thai economy, which has benefited from the growth of exports and tourism. This is a factor that will support the Thai baht appreciation. This year, it is expected to reach 32 baht / US $ at the end of the year from 32.5 at the end of the year.
Domestic Economy Continued expansion. Expected to see private investment tend to accelerate. Many factors support both the bright export. As a result, investment in machinery and equipment increased. Government investment is projected to grow by 12% on the back of government and state enterprise investment, which totaled 1 trillion baht, a level higher than many years ago. The infrastructure projects under construction such as the Pattaya - Map Ta Phut motorway. Double Jira Road - Khon Kaen Junction And it is likely to accelerate investment in transportation in all dimensions. To support the Eastern Special Economic Corridor (EEC) project, such as the extension of the traffic lanes and the secondary roads in the eastern part of Thailand, the industrial sector will continue to see continuous capacity utilization. In line with the business confidence is likely to continue.
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CIMB Group- Principal Financial Group to Realign Ownership Stakes in Joint Ventures Across Southeast Asia
CIMB Group Holdings Berhad (“CIMB” or “the Group”) today announced that it had signed agreements with the Principal Financial Group (“Principal”) for the latter to increase its ownership in the CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management. The agreements will increase Principal’s stake to 60 percent with CIMB retaining 40 percent ownership in both entities. The joint ventures will continue to be co-managed by both companies.This transaction is expected to be completed in the second quarter of 2018 and is subject to the relevant regulatory approvals.“As a leading ASEAN universal bank, asset management continues to be an integral part of our regional banking business. This shareholding realignment will ensure that our asset management joint venture with Principal achieves its maximum potential and continues to sustainably create value for CIMB,” said Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive Officer, CIMB Group.
“Scale and extensive investment expertise are important to this business and we believe this strategic realignment will enhance the value proposition of the joint venture to enable us to serve our customers better.”This exercise will see CIMB Group recording a gain on disposal of approximately RM950 million and will also see its CET1 ratio improve by approximately 18 bps.“This realignment also allows us to realize attractive gains from our strategic investment in CIMB-Principal, and to continue participating in the joint venture as a 40% shareholder,” added Zafrul.
CIMB and Principal have partnered in the region since 2004 and have successfully grown their operations across Malaysia, Singapore, Indonesia and Thailand. The CIMB-Principal Asset Management group of companies has more than MYR70 billion in AUM and is one of the largest asset managers in the region. CIMB-Principal Islamic Asset Management has been managing Islamic institutional mandates since 2008 and is the sole end-to-end Islamic asset management boutique of the CIMB Group and Principal Financial Group.
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KASIKORNBANK announces 2017 net profit of Baht 34,338 Million
Mr. Predee Daochai, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the year of 2017 of Baht 34,338 Million, a decrease of 14.53% over the previous year.
Operating performance for the year of 2017 compared with 2016, KBank and its subsidiaries has operating profit before provision expense and income tax expense of Baht 90,484 Million, an
increase of Baht 935 Million or 1.05% over the previous year mostly because net interest income increased by Baht 4,483 Million or 5.00% and NIM stood at 3.44%. Non-interest income
decreased by Baht 1,030 Million or 1.62% due mostly to a decrease in net insurance premiums, while net fees and service income increased by Baht 2,363 Million or 6.07%. Moreover, other
operating expenses increased by Baht 2,518 Million or 3.94%, resulting in the cost to income ratio that stood at 42.31%. During the year of 2017, KBank has set aside higher allowance for
impairment loss on loans to maintain sustainable solid financial position, improving coverage ratio to 148.45% as of 31 December 2017 from 130.92% at the end of 2016. For the year of 2017,
net profit stood at Baht 34,338 Million, a decrease of Baht 5,836 Million or 14.53% over the previous year.
Operating performance for the fourth quarter of 2017 compared with the third quarter of 2017, KBank and its subsidiaries reported net profit of Baht 5,707 Million, a decrease of Baht 3,766 Million
or 39.75% over the previous quarter mostly because net interest income increased by Baht 310 Million or 1.31% and NIM stood at 3.49%, while non-interest income decreased by Baht 1,659
Million or 10.10% mainly due to revenue from capital market products. Other operating expenses increased by Baht 2,621 Million or 16.04% due to premises and equipment expenses and
marketing expense due to seasonality, resulting in the cost to income ratio that stood at 48.87%. KBank still efficiently managed expense as yearly targeted. Moreover, KBank has set aside
higher allowance for impairment loss on loans in this quarter.
As of 31 December 2017, KBank and its subsidiaries' total assets were Baht 2,900,841 Million, rising Baht 57,563 Million or 2.02% over the end of 2016. The majority came from an increase in
loans. NPL gross to total loans stood at 3.30% as of 31 December 2017, while at the end of 2016 this stood at 3.32%. In addition, as of 31 December 2017, KASIKORNBANK FINANCIAL
CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 17.96%, with a Tier-1 Capital ratio of 15.66%
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