Bangkok--18 Jan--Bangkok Bank
Bangkok Bank reports 2012 net profit of Baht 33.0 billion
Net profit up 20.8% Loans up 9.1% Deposits up 15.5%
Bangkok Bank and its subsidiaries have reported a net profit of Baht 33.0 billion for 2012, an increase of Baht 5.7 billion or 20.8 percent from 2011. Net interest income rose by Baht 2.3 billion, non-interest income by Baht 920 million, and operating expenses by Baht 1.8 billion.
Lending has continued to grow. At the end of December 2012, total lending was Baht 1,604.4 billion, an increase of Baht 134.0 billion or 9.1 percent from the end of 2011. This growth was experienced across every customer segment: corporate, SME and retail.
Bangkok Bank President Chartsiri Sophonpanich said: “We registered positive loan growth in 2012, exceeding our targets in many segments, most notably corporate and SME lending. We achieved this by taking very good care of our customers and staying close to them, allowing us to understand their needs and support them appropriately.”
“For 2013, the bank expects good loan growth to continue, with loan demand benefiting from expanding private sector investment, supported by the government’s infrastructure projects and preparations by all sectors of society for the introduction of the ASEAN Economic Community.”
The bank maintained its high asset quality throughout the year. At the end of 2012, non-performing loans decreased to Baht 42.3 billion, while the ratio of non-performing loans to total loans decreased from 2.7 percent, at the end of December 2011, to 2.3 percent at the end of December 2012. The loan loss reserve coverage of NPLs was 206.9 percent.
Deposits also continued to grow owing to the timely introduction of products that meet customers’ needs. At the end of December 2012, deposits were Baht 1,834.7 billion, an increase of Baht 246.8 billion or 15.5 percent from the end of December 2011. The bank’s success in gathering deposits provides it with adequate liquidity and will allow it to meet rising loan demand in the future. The loan-to-deposit ratio declined from 92.6 percent at the end of 2011 to 87.4 percent at the end of 2012.
Net interest income for the year 2012 was Baht 55.0 billion, an increase of Baht 2.3 billion or 4.3 percent from the previous year, due mainly to an increase in interest income on loans which rose by Baht 10.5 billion. However, interest expenses on deposits rose by Baht 9.1 billion due mostly to strong growth of deposits balances.
The net interest margin declined from 2.76 percent in 2011 to 2.55 percent in 2012, due largely to rising interest expenses on deposits caused by continuous deposit campaigns in 2012 and higher contributions to the Deposit Protection Agency (DPA) and the Financial Institution Development Fund (FIDF).
Non-interest income for the year 2012 was Baht 30.5 billion, an increase of Baht 920 million or 3.1 percent from 2011, due mainly to an increase in net fees and service income, higher gains on trading and foreign exchange transactions, and gains on disposal of assets. However, net gains on investments and other operating income decreased. Operating expenses were Baht 37.9 billion, an increase of Baht 1.8 billion or 5.0 percent from the previous year, due mainly to increases in employee expenses, taxes and duties, and premises and equipment expenses. The cost-to-income ratio was 44.3 percent.
Operating profit before income tax expenses was Baht 40.3 billion, an increase of Baht 6.2 billion or 18.0 percent from last year. The bank had an impairment loss of loans and debt securities of Baht 7.2 billion, a decrease of Baht 4.8 billion from 2011.
The bank’s capital adequacy remained strong. With the inclusion of net profit for the second half of 2012, the total capital adequacy ratio was 17.2 percent, while the Tier 1 capital ratio was approximately 12.8 percent.
Shareholders’ equity at the end of December 2012 was Baht 273.5 billion, equivalent to 11.3 percent of total assets. Book value per share was Baht 143.30, an increase of Baht 15.57 from 2011.