Chart of the Week: Thai banks' loan growth to hit 5% in 2017

It recovered to 3.3% in Q2.

Whilst Thai banks' loan growth is still considered sluggish, it steadily recovered to 3.3% yoy in 2Q17 (1Q17: 2.8%).

Based on the July balance sheets of the banks, UOB Kay Hian expects July to have seen a continued pick-up in loan growth to about 4% yoy.

"Better loan growth has been supported by higher loan demand from the corporate sector (real estate, export-related and construction industries). We expect loan growth to steadily recover to about 5% in 2017, underpinned by a continued economic recovery and infrastructure project spending," added UOB Kay Hian.