Thai commercial banks’ profits in 2010 increasing 34.5%

BANGKOK, 11 February 2011 (NNT) – The Bank of Thailand (BoT) expects Thai commercial banks’ profits in 2010 at about 123 billion THB, increasing by 34.5% from the previous year.

BoT Financial Institutions Strategy Department Senior Director Nawaporn Maharagkaga said the rising profits came from both interest and non-interest operating incomes. Moreover, she indicated that the doubtful debts had declined due to better loan quality.

Regarding the current Gross Non-Performing Loans (Gross NPLs), Ms Nawaporn reported that the figure as of the end of December 2010 stood at 312 billion THB, a decrease of 63.5 billion THB. She attributed the decrease to debtors’ capability to perform repayment and the debt restructuring.

As a result, the senior director stated that the whole year’s NPLs dropped to only 3.6% of the loan system.