BANGKOK, Feb. 18 (Xinhua) -- Thailand's banking sector has remained resilient in the final quarter of 2024, supported by robust levels of capital, loan loss provisions and liquidity amid loan growth contraction, the central bank said on Tuesday.

According to the Bank of Thailand (BOT), loan growth across the country's licensed banks and subsidiaries fell 0.4 percent year on year in the October-December period, an improvement from the 2 percent decline recorded in the previous quarter, driven by loan expansion among large corporates.

Small- and medium-sized business loans shrank at a slower pace, while consumer loans continued to drop, especially auto loans, which remained affected by structural challenges and slow income recovery for vulnerable groups, the central bank said in a statement.

The banking system's gross non-performing loans (NPLs) decreased to 552.1 billion baht (about 16.39 billion U.S. dollars) at the end of December, equivalent to an NPL ratio of 2.78 percent, down from 2.97 percent at the end of September, mainly due to business loan recoveries, banks' loan portfolio management and ongoing debt assistance programs, said BOT Assistant Governor Suwannee Jatsadasak.

On the profitability front, the Southeast Asian nation's banking sector experienced improved performance in 2024 compared to a year earlier, primarily attributed to higher non-interest income, especially from fair value through profit or loss transactions, and increased net interest income, Suwannee told a news conference.

She noted that it remains important to keep an eye on the debt serviceability of the small- and medium-sized businesses and households struggling with slow income recovery and high debt burdens, as well as structural issues affecting specific businesses and their declining competitiveness.