Bangkok--24 Jul--Bangkok Bank
Bangkok Bank has reported a consolidated net profit for the first half of 2012 of Baht 17.0 billion,
an increase of Baht 3.1 billion or 22.2 percent from the same period last year. Net interest incomerose by Baht 2.2 billion. Non-interest income rose by Baht 893 million. Operating expenses roseby Baht 1.5 billion.
Bangkok Bank President Chartsiri Sophonpanich said: “Lending this year has grown strongly
with higher demand in three key areas: long-term loans for private sector expansion, long-termloans for flood-related reconstruction, and working capital loans for normal operations and forinventory replenishment. Consequently, lending in the first half of 2012 increased by Baht71.1 billion, or 4.8 percent, from the end of last year, and was 13.1 percent higher than at theend of June 2011. Loan growth was healthy for every customer segment: large corporates,SMEs, and retail.”
Despite the high loan growth of the past two years, the bank has been able to maintain loanquality within a comfortable range due to the high priority placed on credit-risk management.The ratio of non-performing loans to total loans at the end of the second quarter of 2012 wasmaintained at the same level as at the end of 2011 at 2.7 percent, and was down from 3.0percent at the end of 2010.
At the same time, the bank has steadily bolstered its liquidity, with good growth in depositsfrom retail customers. Deposits rose by Baht 85.0 billion or 5.4 percent from year-end. Theincrease reflects the strength of the bank’s long-standing relationships with a broad range ofcustomers, allowing it to identify and offer products which match customers’ needs and marketconditions.
For the first six months of this year, the bank reported net interest income of Baht 27.2 billion,an increase of Baht 2.2 billion or 8.7 percent from the same period last year, mainly due toloan expansion. However, the net interest margin declined from 2.69 percent in the first sixmonths of 2011 to 2.63 percent in this period. The decrease mostly resulted from higher cost ofdeposits and higher contributions to the Deposit Protection Agency (DPA) and the FinancialInstitutions Development Fund (FIDF).
The bank recorded non-interest income of Baht 15.8 billion, an increase of Baht 893 million or
6.0 percent from the same period last year, due mainly to gains on trading and foreignexchange transactions and gains on disposal of assets. The bank’s operating expenses wereBaht 18.4 billion, an increase of Baht 1.5 billion or 8.7 percent from the same period last year,mainly due to higher personnel costs.
“Bangkok Bank continues to have a positive view on the expansion of the Thai economy.Public investment in infrastructure projects and private investment — both domestic andinternational — are the important drivers. However, we recognize that the fallout from theglobal financial crisis may still have a negative impact, so we have carefully prepared ourliquidity, capital, and loan-loss-reserve positions, and are closely monitoring the situation. Wecontinue to stay close to our customers so we can help them respond to changes and grow withthem. These actions will also allow the bank to be well-placed to respond to the challenges ahead.”