Thai banks flourish in 2024 with double-digit profit growth

Top 10 commercial banks report combined net profit of nearly 250 billion baht as debt crisis begins to subside

 

Thailand's leading commercial banks demonstrated strength and resilience in 2024, achieving double-digit growth in net profits for a combined total exceeding 250 billion baht.

 

Financial reports for 2024 from 10 major commercial banks – Kasikornbank (KBANK), Bangkok Bank (BBL), Krungthai Bank (KTB), Siam Commercial Bank (SCBX), Bank of Ayudhya (BAY), TMB Thanachart (TTB), Kiatnakin Phatra (KKP), TISCO Bank, Land and Houses Bank, and CIMB Thai –show strong net profit growth, driven by a reduction in provisions for credit losses due to effective debt management. Several banks also increased their loan portfolios.

 

The 10 banks amassed a total of 249.124 billion baht in profits, a 7.30% increase compared to the previous year. Net profits alone reached 232.174 billion baht.

 

KBANK emerged as the top performer, boasting a net profit of 48.598 billion baht, a rise of 14.60%. Bangkok Bank followed closely with 45.211 billion baht (+8.59%) while SCBX secured third position with 43.943 billion baht (+1%).

 



 

CIMB Bank showcased its strength as a medium-sized player with impressive net profit growth of 77.69% for a total of 2.852 billion baht in 2024.

 

However, SCBX maintained the highest profit with 11.707 billion baht, up 7% up, followed by KBANK with 10.494 billion baht (+11.78%).

 

Medium-sized and smaller banks experienced notable growth, spearheaded by Kiatnakin Phatra with net income of 1.406 billion baht.
 

  

 
     Declining provisions for credit losses

The total credit-loss provision for all 10 banks in 2024 fell 2.11% from the previous year to 230.749 billion baht.

 

The provision cut ranged from 3.48% at Bangkok Bank to 283% at TISCO. The trend was downwards, with total fourth-quarter provisions across all banks falling 53.873 billion baht or 5.75% from the previous quarter and 21.94% compared to the same period last year.
 

     

     Improving asset quality

The 10 banks reported a total of 518.562 billion baht in non-performing loans.

 

NPLs increased at SCBX (+0.80%), Krungsri (+19.82%), Kiatnakin Phatra (+22.75%), and TISCO (+4.62%), but continued to decline at Bangkok Bank (-0.14%), Kasikornbank (-1.31%), Krungthai Bank (-4.37%), TTB (-3.10%), and CIMB Thai (-19.08%).
 

 

     KBANK leads in profitability

KBANK’s position as Thailand’s most profitable bank in 2024 was attributed to a 2.75% increase in net operating income driven by strategy implementation and business volume expansion, coupled with a 8.85% drop in credit-loss provisions.
 

  



 
     Krungthai performs strongly
 
Krungthai Bank recorded growth of 18.8% YoY for a net profit of 43.856 billion baht. Overall net profit growth would have been 11.3% with the exclusion of provisions for one major customer’s deteriorating debt quality.

 

Krungthai said the performance was driven by sustainable strategic growth, balanced portfolio management, 4.7% loan growth, and prudent asset quality management.

 

     Bangkok Bank boosted by debt provision cut

Bangkok Bank credited its strong 8.6% net profit growth to a 2.3% rise in net interest income, driven by loan expansion and higher yields on income-generating assets, despite rising deposit costs. The bank's credit loss provisions fell to 34.838 billion baht in the fourth quarter, a level comparable to the previous year.
 

 

     SCBX buoyed by interest income

SCBX Group’s robust net profit growth was spurred by a fourth-quarter rise of 6.5%, driven by a 3.8% year-on-year increase in net interest income from expansion of the net interest rate differential. It said a 2.3% decrease in provisions from the previous year contributed to the group's positive performance.

(2025/01/22-00:00)