Bank's non-performing loans (NPLs) had increased by
Automobile NPLs registered a significant rise, increasing to 2% last year from 1.4% in 2012, while credit-card NPLs swelled to 2.6% from 2% a year earlier.
But the ratios of gross NPL and net NPL to total loans at the end of 2013 reduced to 2.2% and 1%, respectively, from 2.3% and 1.1% recorded in 2012.
Special mention loans, classified as overdue loans for one month but not more than three months, rose to
Consequently, the ratio of special mention loans to the total credit increased to 2.4% from 2.2%.
Commercial lenders have, however, conservatively increased loan-loss provisions for future economic uncertainty, raising the ratio of the actual loan loss provision to required provisions to 168% from 157% a year earlier.
Their loans at the end of last year expanded at a slower pace at 11% in line with sluggish economic growth from a 13.7% expansion in 2012.
Consumer loan contributed to the overall loan deceleration especially in car and personal loans, growing by 12.9% compared with 21.6% a year earlier, as a result of a slowdown in auto loans after all cars under the first-time car buyer scheme have been delivered.
Car loans fell to 8.4% year-on-year in 2013 after expanding 39% in 2012.
Personal loan growth also shrank on the back of cautious consumer spending stemming from the swelling household debt and stricter loan approvals by commercial banks, growing by 20.2% year-in-year compared with 27.7% in 2012.
(c)2014 the Bangkok Post (Bangkok, Thailand)
Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com
Distributed by MCT Information Services