Thai banks' NPLs likely rose to 3.75% in 3Q17

The sector’s earnings may have risen by only 1%.

Maybank Kim Eng analysts estimate Thailand's industry NPLs rose 5bps on average to 3.75% in 3Q17, which in turn should cause most banks to keep credit cost at a high level.

"However, in 2Q17 Krung Thai Bank (KTB) had already made large provisions for EARTH’s loan default and its provisioning expenses should have returned to the normal level in 3Q17, helping the sector’s total provisioning expenses to fall by 10% QoQ. For the same reason, the earnings of the sector should have improved in terms of QoQ growth (+9%). Excluding KTB, the sector’s earnings may have risen by only 1% QoQ (-2% YoY)," said Maybank Kim Eng.