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Thai tmb bank cuts 2016 loan growth target for second time

´╗┐BANGKOK Nov 9 TMB Bank, Thailand's seventh-largest lender, has cut its loan growth target for this year to 3-5 percent from 6 percent due to weaker-than-expected borrowing demand in a slowing economy, an executive said on Wednesday. This was the second reduction in 2016 loan growth target for TMB, which is 35 percent owned by Dutch financial group ING Groep. TMB's lending rose 2.4 percent in the first nine months of 2016, and just 0.4 percent in the third quarter, mostly from growth in retail and mortgages, Benjarong Suwankiri, head of strategy, said during the quarterly earnings presentation.

Loans to small- to medium-sized firms and large companies fell 2 to 4 percent in the first nine months as the Thai economy has been hit by weak exports and sluggish consumption, he said.

TMB expected its non-performing loan to stay below 3.0 percent of total lending at the end of this year, versus 2.5 percent at the end of third quarter, Benjarong said.

Last week, state-controlled Krung Thai Bank, the country's second-largest lender, revised its loan growth target and is the only major Thai banks to forecast loan contraction this year due to a slowdown in government investment.

Turkish banks loans growth continues to decline

´╗┐ISTANBUL Feb 13 Growth in Turkish bank loans slowed to less than 26 percent year-on-year at the beginning of February, adding to signs to a gradual economic slowdown after a year of unorthodox monetary policy by the central bank aiming at preventing overheating. The figures were sharply above numbers of closer to 10 percent given by central bank governor Erdem Basci last month and were not directly comparable. But they gave the same indication of a steady easing of the loan growth which drove Turkey's double-digit economic expansion a year ago. Loan growth stood at 25.47 percent from a year earlier as of Feb. 3, declining from 26.37 percent a week earlier, according to the weekly data published by banking regulator BDDK.

Year-on-year loans growth stood at 29.50 percent at the end of 2011, above the central bank's target of 25 percent growth for the full year.

The central bank had said it wanted to keep loan growth to 25 percent in 2011, after loans expanded 34 percent in 2010, fuelling demand for imports that have led to worryingly high external deficits.

The nominal figures provide the basis for the Turkish central bank's considerations on monetary policy, although it tends to refer publicly to numbers adjusted for shifts in exchange rates.