This is why Krung Thai Bank's margins have dropped to 2.92% in 2012

It was 3.3% in 2008.

Nomura raises Krung Thai Bank’s earnings 4% in 2013F and 3% in 2014F which puts them 9% ahead of the street in 2013F and 12% ahead in 2014F. 

Here's more from Nomura:

Increased earnings reflect higher margins which we raise by 10bps in 2013F and 9bps in 2014F.

KTB’s margins have dropped from 3.30% in 2008 to 2.92% in 2012 given the combination of lower interest rates, strong deposit competition from non-commercial state banks and weak loan pricing power.

Our view is that margins recover to 3.00% in 2013F and to 3.10% by 2015F given stable/rising domestic interest rates, less state bank deposit competition and improving loan pricing power (from an investment and corporate/SME loan cycle for the first time since the 1997 financial crisis).