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Citigroup cuts profit f'casts for major Thai banks

Tue Jun 17, 2008 10:36pm EDT

BANGKOK, June 18 (Reuters) - Citigroup has cut its 2008-09 earnings estimates for leading Thai banks by 2-9 percent, citing weak loan growth momentum in the second half of this year due to an economic slowdown and rising political tension.

The broker also reiterated its "sell" reccommendation for the likes of Bangkok Bank BBL.BK, Krung Thai Bank KTB.BK, Siam Commercial Bank SCB.BK and Kasikornbank KBAN.BK.

However, it rated mid-caps such as Bank of Ayudhya BAY.BK and TMB Bank TMB.BK as "buys" due to their franchise restructuring, new management and earnings improvements.

On Tuesday, bank shares .SETB fell 1.4 percent, led by a 0.8 percent decline for top lender Bangkok Bank and a 1.7 percent drop by number two Krung Thai Bank. ($1=33.08 Baht) (Reporting by Arada Therdthammakun; Editing by Ed Cropley)



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