Thailand banks’ loans grew 6.5% in 2021

But gross non-performing loans rose slightly during the year.

Thailand banks’ loans grew 6.5% in 2021 to extend the 5.1% growth recorded in the previous year, according to data released by the Bank of Thailand (BOT).

Corporate loans grew 7.9% year-on-year during the same period, reflecting the financing needs of businesses in line with economic recovery, Thailand’s central bank said. 

Loans to the government also continued to increase whilst small and medium enterprise loans continued to expand on the back of the rehabilitation credit scheme, according to BOT.

Consumer loans grew 4% over the year, keeping a steady pace from the previous year’s 4.2% growth. 

By segment, credit card loans recovered to grow by 1.8%, after declining 2.1% in 2020. 

Personal loans also continued to grow due to households’ liquidity needs, growing 7.9% during the year, expanding faster than the 4.2% growth recorded in 2020. 

Auto loans remained stable at 7.8%, consistent with domestic car sales, which have not yet recovered, according to BOT.

Mortgage loans increased at a slower rate in line with a decline in housing demand from the previous year.

Stable loan quality
The country’s gross non-performing loans (NPL) rose slightly to around $16.5b (530.7 billion baht), equivalent to an NPL ratio of 2.98%. 

Meanwhile, the ratio of loans with a “significant increase in credit risk” to total loans stood at 6.39%, decreasing from 6.62% in the previous year.

Despite the slight rise in gross NPL loans, loan quality in 2021 remained relatively stable, according to BOT, due primarily to debt restructuring and financial assistance measures.

(US$1 = 32.15 Thailand Baht ฿)