Thailand banks suffer wimpish loans in May

But a rebound is on the way.

According to Maybank Kim Eng, Thailand banks recorded weak loans in May, with system loans growing 0.4 percent MoM, 7.8 percent YoY, and 1.0 percent YTD that month, according to an update from Maybank on Thailand banks.

It also noted that banks with high business loan bias post positive growth while retail-driven banks contracted.

Maybank is optimistic, though, that loan demand will recover in the second half of 2014, driven by loans from corporate and SMEs.

Here's more from Maybank Kim Eng:

We expect an increase in business loan demand after the Board of Investment approved THB125b of delayed projects in June. A further THB600b of projects are expected to be approved in 2H14.

The acceleration of the state budget and resumption of infrastructure projects would help boost long term economic growth.

We maintain our loan growth forecast at 6% or THB550b in 2014, which means 0.7% growth per month on average for the remainder of the year.