Bangkok--20 Jul--Bangkok Bank
- Total assets up to 2.01 trillion
- Year-to-date lending up by 8.5 percent
- Second quarter net interest margin up to 2.76 percent
Bangkok Bank has recorded a consolidated net profit of Baht 7.41 billion for the second quarter of 2011, Baht 937 million, or 14.5 percent, higher than the previous quarter and Baht 619 million, or 9.1 percent, higher than the same quarter a year ago. Net profit for the year’s first half, ending June 30, 2011, was Baht 13.87 billion, Baht 1.10 billion or 8.6 percent higher than the same period in 2010.
Bangkok Bank President, Chartsiri Sophonpanich, said the continued strong performance in the latest quarter reflected the positive economic environment and the bank’s ability to make the most of the ensuing opportunities. The bank’s total assets, as at June 30, 2011, have already been above Baht 2.01 trillion.
“Bangkok Bank is well-positioned to benefit alongside its vast customer base from Thailand’s improving economy. Our long-term relationship with customers and deep understanding of their business allow us to respond quickly and appropriately to their changing needs. These factors also enable our people to accurately assess any related risks and make sound decisions in providing services.”
Strong export performance, solid domestic consumption, and resurgent private investment led to higher loan demand. The bank’s lending, as at June 30, 2011 was Baht 1,363.15 billion, 8.5 percent higher than at December 31, 2010. The increase was due mainly to higher loans for working capital and for capital expenditure, particularly from large corporates and SMEs.
In the first 6 months of 2011, deposits increased by Baht 76.32 billion or 5.5 percent to Baht 1,470.71 billion.
Non-performing loans were Baht 45.29 billion or 2.9 percent of total loans. The bank provided another Baht 1.54 billion of provisioning expenses in the second quarter and loan loss reserve coverage ratio was 166.5 percent.
Net interest income in the second quarter was Baht 13.08 billion, an increase of Baht 1.19 billion from the previous quarter due to rising interest rates and business volume. Net interest margin rose to 2.76 percent, compared with 2.55 percent in the previous quarter and 2.61 percent in the same quarter of last year.
Net fees and service income for the second quarter rose by 12.0 percent from the same quarter last year to Baht 4.64 billion. Fees and service income increased due mainly to rising credit card transactions, electronic transactions, guarantee and aval services, and loan-related fees. Fees and service expenses also increased in line with a higher number of transactions.
The bank recorded a gain on investments of Baht 762 million in the second quarter, mostly due to the realized gain on shares received from debt restructuring.
Compared with the same quarter last year, total revenue increased 5.7 percent to Baht 20.43 billion while operating expenses increased 4.9 percent to Baht 8.79 billion. As a result, the cost-to-income ratio decreased from 43.4 percent to 43.0 percent.
The bank’s pre-provision operating profit was Baht 11.64 billion, Baht 696 million or 6.4 percent higher from the same quarter last year.
The bank maintained its strong capital position. With the inclusion of net profit for the first-half of the year, its capital adequacy ratio would be 16.5 percent and its Tier 1 capital ratio would be 13.2 percent.
Shareholders’ equity as at June 30, 2011 was Baht 236.32 billion. Book value per share was Baht 123.8.