Siam City Bank (SCIB) was the only bank to see a rise in its distressed loans at the end of last year, despite a new method of calculating net non-performing loans (NPLs) that was supposed to reduce their value.

Since all of the other 16 banks enjoyed a sharp decline in their bad loans, NPLs for the entire banking system fell to 4.5 per cent at year's end, from 8.86 per cent in the third quarter, Bank of Thailand data indicate.

A central bank source yesterday said the sharp decline in NPLs was due mainly to the banks applying International Accounting Standard 39, which allowed them to deduct reserves from NPLs.

NPLs in the banking system decreased by half to Bt229.95 billion at the end of last year.

As of last month, SCIB recorded NPLs of Bt8.76 billion, an increase of 32 per cent from the previous quarter. The ratio also increased from 2.66 per cent of total loans in the third quarter to 3.6 per cent.

SCIB could not be reached for comment.

Kiatnakin Bank showed the worst bad-loan problem, at 10.12 per cent of total loans, or Bt4.95 billion, but that was a better than 15.6 per cent in the previous quarter. It was the only bank posting a double-digit NPL ratio.

TMB Bank ranked second with 6.33 per cent or Bt33.3 billion, down from 11.93 per cent in the third quarter.

Krung Thai Bank came in third with 6.26 per cent, compared with 10.33 per cent in the third quarter, but was tops by value at Bt59 billion. Bangkok Bank was first in value in the third quarter, with Bt103.4 billion.

Asia Credit Bank's NPL ratio was 6.22 per cent in the fourth quarter, or Bt1.57 billion, down from 16.63 per cent in the third quarter.

GE Money Retail Bank posted the lowest ratio at the end of last year, 1.6 per cent, compared with 2.7 per cent in the third quarter. It was the second lowest in value, at Bt239 million.

Tisco Bank achieved the second-lowest NPL ratio of 1.81 per cent, compared with 4.61 per cent in the third quarter. BankThai's ratio was 1.82 per cent, down slightly from 2.6 per cent.

Mega International Commercial Bank held the smallest NPL portfolio, with Bt89.3 million, followed by GE Money Retail Bank and Standard Chartered Bank (Thai). 

Anoma Srisukkasem

The Nation