Bangkok--21 Oct--Bangkok Bank
- Net interest margin stable at 3.0 percent
- Non-interest expenses down Baht 1.2 billion
- Non-performing loans down Baht 1.0 billion
- Capital ratio at 17.5 percent
Bangkok Bank has recorded a consolidated net profit of Baht 6.3 billion in the third quarter of 2010, which is Baht 1.2 billion or 23.0 percent higher than the same quarter a year ago. The profit was Baht 585.5 million or 8.5 percent lower than that in the second quarter of 2010 when there was one-off gain on investments.
Bangkok Bank President Chartsiri Sophonpanich said the bank continues to benefit from the strengthening Thai economy.
“Growth had initially been driven by the export sector, but now other sectors are also performing well. Capacity utilization is now trending higher, and loan demand should grow in line with the resulting capital expenditure and sustained economic growth,” said Mr. Chartsiri.
The bank’s lending as of September 2010 was Baht 1,166.5 billion, a rise of Baht 23.2 billion or 2.0 percent from the end of 2009.
At the end of September 2010, deposits were Baht 1,352.3 billion, a slight decline of 0.6 percent from the end of 2009. The loan-to-deposit ratio was 86.3 percent.
Net interest income for the quarter was 1.5 percent higher than the previous quarter. The net interest margin was stable at 3.0 percent. For the quarter, the bank reported higher interest expenses on deposits and lower investment income of Baht 310 million and Baht 264 million, respectively, partly offset by a Baht 512 million increase in interest on loans.
Non-interest income declined by Baht 1.2 billion quarter-on-quarter due largely to gain on investments from the sale of the bank’s stake in ACL Bank in the second quarter. Fee income was 4.9 percent higher than in the previous quarter, with a greater contribution from fees such as credit cards, payment services, and investment banking.
Non-interest expenses dropped by Baht 1.2 billion or 10.4 percent from the previous quarter. The decreases were observed in almost all expense items, especially in personnel, premises and equipment, and other expenses.
The value of non-performing loans (NPLs) at the end of September 2010 was Baht 54.1 billion, Baht 1.0 billion lower than three months previously. The bank set aside provisioning expenses of Baht 1.8 billion this quarter. The bank’s loan loss reserves were a strong Baht 72.6 billion and the ratio of loan-loss reserves to NPLs was a robust 134.1 percent.
The bank maintained its strong capital position. With the inclusion of the net profit for the third quarter, its capital adequacy ratio was 17.5 percent and its Tier 1 capital ratio was 14.2 percent. Shareholders’ equity as of September 30, 2010 was Baht 223.5 billion.