...Tough Operating Environment: The operating environment has been weak for all securities companies in Thailand, despite their varied business models and different risk appetites, due to muted economic and stock market conditions. Prospects appear likely to remain challenging for 2016. Competition also remains high, with some companies achieving increased market share through aggressive pricing, although most key companies should be able to maintain reasonable profitability. Fitch believes the companies' leverage generally remains manageable. The industry's debt (borrowings) to equity ratio was 16% at end-2014, slightly higher than 12% at end-2010. Competitive Risks: Intensifying competition would be likely to have a negative impact on profitability, particularly on brokerage income as the margins are already small. In addition, sector risks would increase if securities companies' risk appetite increases, through for example such businesses as proprietary trading, or margin loans. Exposed...
