Business

Thailand’s Household Debt to Hit 91.4 Percent of GDP By Years End

Bank of Thailand Pressured to Cut Rates, baht

Thailand’s household debt is likely to reach 16.9 trillion baht, or 91.4% of GDP, by the end of this year, with the banking system’s non-performing loans (NPLs) valued at approximately 152 billion baht, according to TMB Thanachart Analytics.

Household debt stood at 16.2 trillion baht at the end of the third quarter last year, up 3.4% from the same period the previous year, and accounted for 90.9% of GDP.

The 3.4% increase was lower than the same period in 2022 because commercial banks tightened lending procedures, which contradicted credit card loans, leasing, and personal loans, which expanded at a faster rate over a decade, according to TMB Thanachart Analytics.

NPLs in the banking system rose by 2.79% to around 152 billion baht, while outstanding auto loan repayments, which were past due by 1-3 months, were about 170 billion baht, excluding loans by non-bank organisations and special financial institutions (SFIs).

The bank stated that the predicted sluggish expansion in household debt this year is consistent with the gradual economic recovery.

Thailand’s household debt level in the future remains fragile due to the slow rate of economic recovery, even though the economic outlook for this year is stronger than the previous year, rising financial charges, which may influence debtors’ ability to repay, and a lack of financial discipline among Thais.

Household debt of more than 80% of GDP will have a long-term impact on consumption and economic growth. According to TMB, one-third of household debt is for consumption, such as credit card borrowing and personal loans, both of which are deemed non-productive.

As long as the grassroots economy is weak, borrowers’ debt servicing ability will not improve, according to the bank, which proposes responsible lending practices with the implementation of risk-based pricing to strengthen home debtors’ financial discipline.

Thailand’s Fiscal Policy Office forecasts 2.8% GDP growth this year

Thailand’s economic growth this year is predicted to be around 2.8%, driven primarily by increased exports and tourism. Pornchai Theeravet, director-general of the Fiscal Policy Office and spokesman for the Finance Ministry, said this compares positively to last year’s 1.8% GDP growth.

He predicted 33.5 million foreign arrivals this year, a 19.5% rise from the previous year. This will create around 1.48 trillion baht in tourism income, a 23.6% rise over the previous year.

Thai exports fell by 1.5% last year, owing primarily to an economic slowdown in Thailand’s primary trading partners. The manufacturing production index shows that exports of vehicles, computers, and electronic items were particularly heavily hit.

Last year, imports fell by 1.9% year on year, owing to a dip in the value of the Thai baht in the first three quarters of the year, before rebounding in the fourth.

Pornchai stated that the US Federal Reserve’s hike in interest rates, as well as Japan’s relaxation of fiscal policy, had led to the Thai baht’s strengthening to an average of 34.81 baht per US dollar.

In terms of capital and bond markets, he stated that foreign investors sold approximately 330 billion baht of their investments last year, resulting in a foreign currency outflow.

He predicts that Thai exports will grow by about 4.2% this year, while imports will rise by about 4%, with inflation expected to rise by only 1% for the year, and Dubai crude will stabilise at US$82/barrel, which is close to last year’s US$81.9/barrel due to a slowdown in demand.

Pornchai stated that the government should emphasise infrastructure development for long-term sustainable economic development, including sustainable energy development, digital economy investment, and regional connection development.

It should also focus on skill development to equip Thai workers with the skills needed in a changing labour market, as well as budgetary stability.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP