This report does not constitute a rating action. Overview Key strengths Key risks Strong market position as one of the four largest banks in Thailand with a strong low-cost deposit base. Tough operating conditions due to uneven economic recovery in Thailand. Government support due to high systemic importance. Pressure on asset quality from weak loans, particularly small and midsize enterprise (SME) companies and households. The bank?s credit losses will remain elevated over the next one to two years due to a challenging economic environment. These will, however, be lower than post-pandemic peaks given a buildup of provisioning coverage in the past five years. The bank's nonperforming loans (NPLs) could increase but should remain manageable, reflecting proactive NPL management and restructuring.
