Ms. Thida Kaewbutta, Director of Strategy at Srisawad Corporation Public Company Limited, or SAWAD, disclosed that the company is preparing relief and assistance measures for customers affected by flooding. The title-loan portfolio will see only limited impact because the flooding occurred only in certain areas, and she is not worried that credit quality will be downgraded from Tier 1 to Tier 2 or Tier 3. She also expects lending to grow in line with the targets set for the remainder of the year. Meanwhile, Mr. Trin Sittisawas, Director of Securities Analysis at Yuanta Securities (Thailand) Company Limited, stated that commercial banks and non-bank lenders will face short-term impacts from debt-relief measures by the government sector and the Bank of Thailand, which will slightly pressure yields and may force additional provisioning over roughly one to two quarters. Commercial banks will be affected only to a limited degree because they have shifted their customer base toward large corporates and salaried employees. As for TISCO and KKP, although they have auto-hire-purchase loans, most of their portfolios consist of new cars covered by insurance against flooding, so KKP is seen as a standout stock if its price declines. The non-bank group is more at risk, especially TIDLOR and SAWAD, which hold four-wheel vehicle title-loan portfolios. TIDLOR has a significant proportion and is more exposed to collateral value and the prices of repossessed cars, while SAWAD has SCAP, which focuses on motorcycle hire-purchase that is easier to repair and has already accelerated write-offs at a high level. MTC, whose main portfolio is motorcycle title loans and whose customer base is not concentrated in flooded areas, is a standout stock. Meanwhile, AMC players such as BAM face limited impact and may even benefit from buyer behavior that places less emphasis on locations prone to flooding.
Ngern Tid Lor Public Company LimitedTIDLOR is named as the non-bank lender most at risk from government and Bank of Thailand debt-relief measures, with heavy exposure to four-wheel title-loan collateral and repossessed-car prices.
Srisawad Power 1979 PCLSAWAD holds four-wheel vehicle title-loan portfolios exposed to government and BoT debt-relief measures pressuring yields and provisioning.
Muangthai Capital Public Company LimitedMTC's motorcycle title-loan portfolio and customer base outside flooded areas make it a standout amid debt-relief measures.
Srisawad Capital 1969 PCLSAWAD's SCAP focuses on motorcycle hire-purchase that is easier to repair and has already accelerated write-offs, limiting flood impact.
TISCO Financial Group Public Company LimitedTISCO is mentioned as having auto-hire-purchase loans, but most of its portfolio is new cars insured against flooding, so the debt-relief impact is limited.
Kiatnakin Phatra Bank Public Company LimitedKKP's auto-hire-purchase portfolio is mostly new cars insured against flooding, seen as a standout if price declines.
Bangkok Commercial Asset Management Public Company Limited