Thailand's Thanachart Capital Q2 profit rises on lower provisions

Fri Jul 15, 2016 8:15am EDT
 
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BANGKOK, July 15 (Reuters) - Thailand's Thanachart Capital Pcl, a partner of Canada's Bank of Nova Scotia , said on Friday its quarterly net profit rose 5.2 percent to the highest in 10 quarters, helped by lower provisions and a drop in bad debt.

April-June net profit was 1.47 billion baht ($42.08 million), slightly higher than analysts' forecast of 1.44 billion baht compiled by Thomson Reuters StarMine.

Thanachart booked lower provisions after its non-performing loans fell to 2.71 percent of total lending at the end of June from 2.81 percent at the end of March, it said in a statement.

But loans dropped 1.7 percent in the first half due to sluggish car sales in Thailand, it added.

Thanachart Capital owns 51 percent of Thanachart Bank, one of Thailand's top five auto lenders. Scotiabank owns 49 percent of Thanachart Bank.

Scotiabank has approached a unit of Bank of China and other lenders to gauge their interest in its stake in the Thai bank, people familiar with the matter said in February.

Earlier on Friday, Kiatnakin Bank reported a 73 percent surge in quarterly net profit to 1.3 billion baht due to lower costs and rising net interest income, but hire purchase loans contracted 2 percent in the first half.

On Monday, Tisco Financial Group reported a 20 percent rise in second-quarter net profit, though loans fell 3.1 percent in the first half due to weak auto and small to medium sized business loans.

($1 = 34.9300 baht) (Reporting by Khettiya Jittapong and Manunphattr Dhanananphorn; Additional reporting by Gaurav Dogra in Bengaluru; Editing by Mark Potter)