But NPLs are unlikely to escalate.
From Maybank Kim Eng's meetings with 54 funds during its Asia marketing trip (KL, SG, HK, & TW), the firm found that foreign investors are more positive on Thai banks than the last time they met in May. However, they remain cautious about the earnings outlook next year and current share prices may not be attractive enough for them.
Here's more from Maybank Kim Eng:
Investors we met appear to agree with us more this time around, rather than in May, that NPLs have peaked or at least should not escalate next year. However, some worry that provisions may continue to rise next year, partially influenced by KBANK’s guidance.
We argue that KBANK’s guidance should not be taken as the industry standard as the bank still needs to strengthen its balance sheet in light of the upcoming IFRS9. Other banks in fact suggest provisions should fall next year.
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