In December 2018, net loans overall grew over the previous month by THB118 billion, or 1.03 percent MoM. As a result, net loans for 2018 increased 5.17 percent YoY, with net outstanding loans outstanding at THB11.63 trillion. Growth was seen in all types of loans, led by retail loans. Meanwhile, outstanding deposits rose over the previous month by THB136 billion, or 1.09 percent MoM to THB12.58 trillion. Deposits overall in 2018 grew 3.96 percent over that reported at the end of 2017, led by savings deposits at large banks.
Liquidity overall at 14 banks stood at approximately THB3.599 trillion as of the 2018 yearend, accounting for 21.0 percent of the total assets. Although that figure declined slightly from the 2017 yearend at THB3.602 trillion, accounting for 21.66 percent of the total assets, it was considered relatively high. The ratio of net loan to deposit, plus issued debt and borrowing (LTD+Borrowing Ratio) increased to 87.79 percent at the end of 2018 over the 86.60 percent recorded for 2017.
Looking into 2019, KResearch expects that loan growth may slow to 5.0 percent, or within a range of 4.0-6.0 percent. However, we believe that growth in domestic investment will help buoy business loans while retail loans may increase at slower pace due to the high 2018 base and declines in growth of home and auto hire purchase loans from 2018. Deposits and bills of exchange are projected to grow about 5.0 percent, which would on a par with loan growth, reflecting banks' efforts in aligning their liquidity with loan extension overall.