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Business Times
22-07-2025
- Business
- Business Times
Thailand's tourism slump and household debt weigh on its lenders
[BANGKOK] Thailand's banks are grappling with weak lending amid high household debt, slowing tourism and sluggish consumer spending that risk dampening their outlook for the rest of the year. The banks are facing lacklustre earnings tied to lower net interest margins – the difference between interest income and paid interest – and muted loan growth as the country endures economic uncertainties, according to a note from Citi Research. Thailand's export and tourism reliant economy has expanded at an average of under 2 per cent over the past decade, trailing other major South-east Asian economies. Gross domestic product will likely grow 1.3 per cent to 2.3 per cent in 2025, constrained by high household debt and slowing tourist arrivals, while the economy is also at risk of a 36 per cent tariff from the US, its largest export market. Thai banks are expected 'to perform worse than their peers elsewhere in major South-east Asian markets through year-end,' said Bloomberg Intelligence analyst Sarah Jane Mahmud. Weak domestic lending is compounded by a slowdown in global trade and 'high levels of bad debt to be exacerbated as small businesses struggle with fewer than expected tourist arrivals and competition from an influx of cheap goods from China in the new trade war,' she said. TMBThanachart Bank expects the Thai economy to continue slowing in the third quarter on lower consumption and overall investments, it said in its earnings statement on Jul 18. It posted 5 billion baht (S$198.4 million) in second-quarter net income, a 7.2 per cent year-on-year drop. Kasikornbank posted a 3.2 per cent fall year on year in its second-quarter net profit due to a decline in net interest income in line with market conditions, it said. The lender said it remains focused on expansion of quality loans. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up SCB X expects full-year loan growth to fall below the lower end of its 1 to 3 per cent target, though it reported a 27.7 per cent on-year jump in second-quarter net profit supported by higher investment gains. Bangkok Bank posted a 0.3 per cent on-year rise in its second quarter net profit. Subdued inflationary pressure indicates domestic demand 'has not yet fully recovered,' it said in its recent earnings statement. Kasikornbank and SCB X are forecast to see year-on-year declines in net profit for the third quarter from declining net interest margins due to policy rate cuts, according to Krungsri Securities analyst Chayaporn Tocharoen. 'Loans of Thai commercial banks aren't expected to record growth in the third quarter mainly because of a weak export outlook,' Kasikorn Securities analyst Korakot Sawetkruttamat said. Higher non-performing loans are anticipated in the second half because of lower-than-expected registrations for the government's debt relief programme, he said. Meanwhile, exporters may struggle to repay loans if they face high US tariffs, Korakot said. The Thai government in late 2024 put in place debt-relief measures that included a three-year suspension in interest and reduced principal payments. 'Policy measures, however, require time to crystallise and effect a structural shift,' said Deepali Seth Chhabria, a primary credit analyst at S&P Global Ratings. A lower negotiated tariff would give Thai banks some relief, Bloomberg Intelligence analyst Sarah Jane said. A rise in wealth management activity in Thailand could also 'help boost fee income and support revenue as net interest income wanes,' she said. BLOOMBERG
Bangkok Post
22-07-2025
- Business
- Bangkok Post
Thailand's tourism slump and household debt weigh on its lenders
Thailand's banks are grappling with weak lending amid high household debt, slowing tourism and sluggish consumer spending that risk dampening their outlook for the rest of the year. The banks are facing lackluster earnings tied to lower net interest margins — the difference between interest income and paid interest — and muted loan growth as the country endures economic uncertainties, according to a note from Citi Research. Thailand's export and tourism reliant economy has expanded at an average of under 2% over the past decade, trailing other major Southeast Asian economies. Gross domestic product will likely grow 1.3% to 2.3% in 2025, constrained by high household debt and slowing tourist arrivals, while the economy is also at risk of a 36% tariff from the US, its largest export market. Thai banks are expected 'to perform worse than their peers elsewhere in major Southeast Asian markets through year-end,' said Bloomberg Intelligence analyst Sarah Jane Mahmud. Weak domestic lending is compounded by a slowdown in global trade and 'high levels of bad debt to be exacerbated as small businesses struggle with fewer than expected tourist arrivals and competition from an influx of cheap goods from China in the new trade war,' she said. TMBThanachart Bank expects the Thai economy to continue slowing in the third quarter on lower consumption and overall investments, it said in its earnings statement on July 18. It posted 5 billion baht in second-quarter net income, a 7.2% year-on-year drop. Kasikornbank posted a 3.2% fall year-on-year in its second-quarter net profit due to a decline in net interest income in line with market conditions, it said. The lender said it remains focused on expansion of quality loans. SCB X expects full-year loan growth to fall below the lower end of its 1%-3% target, though it reported a 27.7% on-year jump in second-quarter net profit supported by higher investment gains. Bangkok Bank posted a 0.3% on-year rise in its second quarter net profit. Subdued inflationary pressure indicates domestic demand 'has not yet fully recovered,' it said in its recent earnings statement. Kasikornbank and SCB X are forecast to see year-on-year declines in net profit for the third quarter from declining net interest margins due to policy rate cuts, according to Krungsri Securities analyst Chayaporn Tocharoen. 'Loans of Thai commercial banks aren't expected to record growth in the third quarter mainly because of a weak export outlook,' Kasikorn Securities analyst Korakot Sawetkruttamat said. Higher non-performing loans are anticipated in the second half because of lower-than-expected registrations for the government's debt relief program, he said. Meanwhile, exporters may struggle to repay loans if they face high US tariffs, Mr Korakot said. The Thai government in late 2024 put in place debt-relief measures that included a three-year suspension in interest and reduced principal payments. 'Policy measures, however, require time to crystallise and effect a structural shift,' said Deepali Seth Chhabria, a primary credit analyst at S&P Global Ratings. A lower negotiated tariff would give Thai banks some relief, Bloomberg Intelligence analyst Sarah Jane said. A rise in wealth management activity in Thailand could also 'help boost fee income and support revenue as net interest income wanes,' she said.
Business Times
10-06-2025
- Business
- Business Times
Top India dealmakers earn 37% more than Singapore peers
[NEW DELHI] Senior dealmakers in India are earning more than their counterparts in Singapore and Hong Kong, according to Bloomberg Intelligence, as global firms boost pay to attract top talent in the world's fastest-growing major economy. Heads and directors at investment banks in the South Asian nation's major financial hubs, such as Mumbai and free trade zone GIFT city, are paid 24 per cent more than their peers in Hong Kong and 37 per cent higher than in Singapore, according to Bloomberg Intelligence's analysis of a survey by recruiter Michael Page. For the year, India's bankers are set for pay rises of more than 9 per cent, compared with 4-5 per cent in the two Asian cities, Bloomberg Intelligence senior analyst Sarah Jane Mahmud wrote in a note on Tuesday (June 10). The report cited survey data from consulting firm Aon. India is seeing a boost from a rebound in investments even as global trade uncertainties weigh on the country's broader outlook. Foreign lenders such as Japan's Mitsubishi UFJ Financial Group are continuing to expand in the South Asian nation, while Julius Baer Group is seeking to triple the wealth assets it manages, the Bloomberg Intelligence report said. Investors have refocused on India's lower relative exposure to the US during the recent turbulence in global trade policy. M&A volumes have picked up and dealmakers say the country is well positioned to lure more overseas capital from private equity and sovereign wealth funds. While India has higher income tax rates than Singapore and Hong Kong, its lower cost of living may be a draw, according to the report. Pay for wealth managers in India, however, continued to lag behind that of Hong Kong and Singapore by 47-58 per cent, only a slight improvement from last year, the report showed. BLOOMBERG
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Business Standard
10-06-2025
- Business
- Business Standard
Top Indian dealmakers earn 37% more than Singapore, Hong Kong peers
India is seeing a boost from a rebound in investments even as global trade uncertainties weigh on the country's broader outlook Bloomberg Senior dealmakers in India are earning more than their counterparts in Singapore and Hong Kong, according to Bloomberg Intelligence, as global firms boost pay to attract top talent in the world's fastest-growing major economy. Heads and directors at investment banks in the South Asian nation's major financial hubs, such as Mumbai and free trade zone GIFT city, are paid 24 per cent more than their peers in Hong Kong and 37 per cent higher than in Singapore, according to Bloomberg Intelligence's analysis of a survey by recruiter Michael Page. For the year, India's bankers are set for pay rises of more than 9 per cent, compared to 4-5 per cent in the two Asian cities, Bloomberg Intelligence senior analyst Sarah Jane Mahmud wrote in a note Tuesday. The report cited survey data from consulting firm Aon. India is seeing a boost from a rebound in investments even as global trade uncertainties weigh on the country's broader outlook. Foreign lenders such as Japan's Mitsubishi UFJ Financial Group Inc. are continuing to expand in the South Asian nation, while Julius Baer Group Ltd. is seeking to triple the wealth assets it manages, the Bloomberg Intelligence report said. Investors have refocused on India's lower relative exposure to the US during the recent turbulence in global trade policy. M&A volumes have picked up and dealmakers say the country is well positioned to lure more overseas capital from private equity and sovereign wealth funds. While India has higher income tax rates than Singapore and Hong Kong, its lower cost of living may be a draw, according to the report. Pay for wealth managers in India, however, continued to lag behind that of Hong Kong and Singapore by 47-58 per cent, only a slight improvement from last year, the report showed.
Mint
10-06-2025
- Business
- Mint
Top India Dealmakers Earn 37% More Than Singapore Peers
(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. Senior dealmakers in India are earning more than their counterparts in Singapore and Hong Kong, according to Bloomberg Intelligence, as global firms boost pay to attract top talent in the world's fastest-growing major economy. Heads and directors at investment banks in the South Asian nation's major financial hubs, such as Mumbai and free trade zone GIFT city, are paid 24% more than their peers in Hong Kong and 37% higher than in Singapore, according to Bloomberg Intelligence's analysis of a survey by recruiter Michael Page. For the year, India's bankers are set for pay rises of more than 9%, compared to 4-5% in the two Asian cities, Bloomberg Intelligence senior analyst Sarah Jane Mahmud wrote in a note Tuesday. The report cited survey data from consulting firm Aon. India is seeing a boost from a rebound in investments even as global trade uncertainties weigh on the country's broader outlook. Foreign lenders such as Japan's Mitsubishi UFJ Financial Group Inc. are continuing to expand in the South Asian nation, while Julius Baer Group Ltd. is seeking to triple the wealth assets it manages, the Bloomberg Intelligence report said. Investors have refocused on India's lower relative exposure to the US during the recent turbulence in global trade policy. M&A volumes have picked up and dealmakers say the country is well positioned to lure more overseas capital from private equity and sovereign wealth funds. While India has higher income tax rates than Singapore and Hong Kong, its lower cost of living may be a draw, according to the report. Pay for wealth managers in India, however, continued to lag behind that of Hong Kong and Singapore by 47-58%, only a slight improvement from last year, the report showed. (Adds detail on wealth manager pay in seventh paragraph) More stories like this are available on
