Listed banks posted stronger results in the third quarter year-on-year thanks to lower loan-loss provisioning and the economic recovery.
The 10 SET-listed commercial banks posted consolidated net profit of 160 billion baht for the first nine months of 2022, an increase of 13.6% year-on-year.
Their combined net profit for the third quarter was 53.8 billion baht, rising 26.1% year-on-year.
Given the improving economy, the banking industry expanded lending and earned better net interest income for the first nine months of the year compared with the same period of last year.
With a strong buffer in terms of loan-loss reserves, banks set aside lower provisions in both the third quarter and nine-month period, on a year-on-year basis.
Bangkok Bank, the country's largest lender by total assets, said in a statement the bank set aside 24.7 billion baht in expected credit losses (ECL) for the nine-month period, a 4.9% drop from the same period last year.
This is consistent with the bank's prudent management, taking into account global economic volatility that may have an impact on Thailand's recovery, according to the statement.
Kasikornbank (KBank) chief executive Kattiya Indaravijaya said in a statement the bank set aside a slightly lower ECL in the first nine months of 2022 than the same period of 2021.
However, the bank is closely monitoring the situation and is prepared to support growth of new lending in line with the business environment and economic uncertainties, she said.
KBank launched a customer care campaign and aims to increase expertise in the efficiency of non-performing loan management.
These efforts will support customers having an improved financial status and enable businesses to maintain their operations, fuelling the economic recovery, said the bank.
Arthid Nanthawithaya, chief executive at SCB X Plc, the holding company of Siam Commercial Bank, said in a statement the firm is recording robust growth thanks to the economic recovery and the company's prudent risk management.
Newly established businesses under the holding company have made significant progress, he said.
The economy maintained its recovery pace in the third quarter, driven by a rebound in tourism and private consumption.
SCB Economic Intelligence Center, SCB's research house, upgraded its GDP forecast for 2022 to 3.0% from 2.9%.
TMBThanachart Bank (ttb) said in a statement the economy is projected to steadily improve in all components for the fourth quarter, supported by all economic growth drivers, especially tourism.
The bank's research house, ttb analytics, forecasts economic expansion of 3.3% in the fourth quarter.