Bangkok--18 Apr--Bangkok Bank
Bangkok Bank reported a consolidated net profit of Baht 9.0 billion for the first quarter of 2014, an increase of Baht 1.3 billion or 16.6 percent from the fourth quarter of 2013. Net interest income rose by Baht 194 million while non-interest income expanded by Baht 489 million. Operating expenses declined by Baht 1.1 billion.
The economic slowdown has had some impact on demand for loans, especially lending for business expansion. However, the Bank’s close attention to, and understanding of customers, meant it provided appropriate support while loan quality remained at about the same level as the end of last year. The Bank’s total lending at the end of March 2014 was Baht 1,745.9 billion, declining slightly from the end of 2013 due to reduced demand from corporate customers in an uncertain economic climate, while SME loans for working capital grew, as did home loans.
At the end of March 2014, non-performing loans (NPLs) were at Baht 45.0 billion or equivalent to 2.2 percent of total lending, at about the same level as the end of last year. The Bank continued to carefully manage its loan quality by focusing on rigorous credit control incorporating assessment and loan approvals as well as systematic loan monitoring. In line with its prudent management and consistent provisioning policy, the Bank set aside provisioning expenses of Baht 2.1 billion for the first quarter of 2014 and consequently the loan loss reserves to NPLs ratio stood at 210.1 percent.
Total deposits at the end of March 2014 were Baht 1,932.9 billion, a reduction of 0.1 percent from the end of 2013, while lending decreased by 0.4 percent from the end of 2013. The loan-to-deposit ratio declined from 90.6 percent at the end of 2013 to 90.3 percent.
Net interest income for the first quarter of 2014 was Baht 14.1 billion and the net interest margin expanded from 2.28 percent in the fourth quarter of 2013 to 2.30 percent in the first quarter of 2014, as loan yields increased while the Bank judiciously managed the cost of deposits. Non-interest income for the first quarter of 2014 was Baht 8.7 billion, an increase of Baht 489 million or 6.0 percent from the fourth quarter last year, mainly due to improved net gains on investments, along with gains on trading and foreign exchange transactions as well as dividend income.
The Bank continued to maintain stringent control on expenses. Operating expenses during the first quarter of 2014 declined by Baht 1.1 billion or 10.9 percent compared with the fourth quarter of 2013 to Baht 9.4 billion. The cost-to-income ratio dropped to 41.4 percent, from 47.9 percent in the fourth quarter of 2013.
In terms of capital reserves, after the inclusion of the net profit for the six-month period ending December 31, 2013, the net profit for the first quarter of 2014 and the deduction of dividends to be paid in May 2014 (approved by the annual ordinary meeting of shareholders), the total capital adequacy ratio, the common equity Tier 1 ratio and the Tier 1 capital ratio would be approximately 17.6 percent, 15.3 percent and 15.3 percent, respectively.
Shareholders’ equity as of March 31, 2014 was Baht 307.0 billion, equivalent to 11.8 percent of total assets. The book value per share was Baht 160.73, an increase of Baht 5.70 from the end of 2013.