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Published on October 26, 2007

The six major banks by nine-month consolidated results are Bangkok Bank, Krung Thai Bank, Siam Commercial Bank, Kasikornbank, TMB Bank and Bank of Ayudhya.

Kasikornbank enjoyed the best loan growth at 7.73 per cent, or Bt52.36 billion, from Bt677.2 billion at the start of the year to Bt729.56 billion at the end of last month. Bangkok Bank boasted the biggest loan portfolio at about Bt1 trillion, up 4.14 per cent from last year.

Three of the banks saw their outstanding loans decline over the nine months, with TMB posting the sharpest drop of 10.59 per cent. Its loans were Bt483.74 billion as of September, down by Bt57.29 billion from Bt541.03 billion at the beginning of the year.

Bank of Ayudhya's loans fell by 2.65 per cent from Bt460.28 billion to Bt448.09 billion. The backslide was a slight 0.22 per cent at Krung Thai Bank, as loans fell by Bt2.13 billion from Bt926.26 to Bt924.13 billion.

Siam Commercial Bank told the bourse that its loans were Bt797.54 billion, an increase of Bt49.9 billion or 6.7 per cent from Bt747.63 billion. Loan growth at the third-biggest bank was broad-based, especially SME loans, which ballooned by Bt31.27 billion or 20.4 per cent.

Retail loans rose by Bt21.6 billion, or 7.7 per cent, on contributions from hire-purchase, home and other loans, which grew 28.1 per cent, 3.6 per cent and 0.7 per cent respectively. Corporate loans grew 0.6 per cent.

Bangkok Bank reported loans of Bt995.4 billion, an increase of 3.9 per cent. The positive showing was across all segments. New business loans were primarily for working capital, while new consumer loans were mainly home loans.

Thanat Rungsrithananon, assistant vice president of Ayudhya Securities, said the six largest banks reported only slight increases in loans due to political and economic uncertainties, which leave people with no confidence to invest or spend.

"The sharp decrease of TMB's lending also retarded the system's loan growth rate significantly," he said.

Somruedi Banchongduang

 The Nation