Banks to control asset quality

The Thai banking industry is expected to remain cautious in controlling asset quality amid economic turbulence brought about by the Covid-19 pandemic.

Pasakorn Wangvivatcharoen, research manager at Asia Plus Securities, said local banks showed signs of improving fee-based income from securities and asset management business.

“Despite setting aside a massive amount for loan-loss provisions in previous quarters, local banks are still retaining relatively high provisions to handle uncertainties due to the pandemic,” said Mr Pasakorn.

Kasikornbank (KBank) chief executive Kattiya Indaravijaya said the bank allocated reserves for loan-loss provisions at a relatively high level in the first three quarters of 2020.

“Given the fresh wave of infections and assistance measures the bank offered to customers, along with business operations amid the uncertainty, KBank set aside…