KTB Prepares to Buffer Clientele Against Economy

Krungthai Bank (KTB) could be required to set aside higher loan-loss provisions to deal with a potential bad-loan uptick this year as the deteriorating debt-servicing ability of clients is further hit by the sagging economy, the Bangkok Post reported. The bank has implemented several financial assistance measures, including debt restructuring required by the Bank of Thailand, to keep customers afloat during this difficult period, and these aid measures could weaken the bank's asset quality, said Payong Srivanich, KTB's president. KTB, the country's third-largest lender by assets, aims to maintain its gross non-performing loan (NPL) ratio this year at 4.3%, the same level as last year. The bank's loan-loss provision for bad debt was 28.3 billion baht in 2019. "We acknowledge that the debt payment ability of customers has become weaker," Mr Payong said. Read more