Bangkok--21 Oct--Bangkok Bank
Bangkok Bank and its subsidiaries have reported a net profit of Baht 8.1 billion for the third quarter of 2016, an increase from the second quarter due to earnings growth of net interest income, net fees and service income, and other operating income. Under the slow recovery economy, the Bank continues to maintain a prudent approach by setting aside further provisioning expenses and focusing on its risk management to maintain asset quality at an appropriate level.
The Thai economy has gradually expanded, supported by public spending and investment and tourism sector growth. Overall exports remain likely to contract in line with the slower growth in the global economy, while domestic private investment has remained stable. Against this backdrop, the Bank's loans at the end of September 2016 amounted to Baht 1,901.9 billion, a rise of Baht 33.0 billion or 1.8 percent when compared with the end of 2015, due to lending to large corporates, medium-sized businesses and the consumer sector.
Given the slow pace of the Thai economic recovery it will take time for the business sector to adapt and recover, however the Bank continues to stay close to its customers and provide them with relevant advice and assistance. The Bank's non-performing loans (NPLs) were Baht 73.2 billion or 3.4 percent of total loans. The Bank continues to set aside appropriate provisioning expenses in line with its prudent strategic approach. Total allowances for doubtful accounts at the end of September 2016 were at the high level of Baht 116.8 billion or 6.1 percent of loans. In the third quarter of 2016, provisioning expenses set aside amounted to Baht 4.9 billion.
The Bank also continues to focus on managing liquidity and financial costs to ensure they are at appropriate levels. At the end of September 2016, the Bank reported total deposits of Baht 2,106.9 billion, an increase of Baht 15.9 billion or 0.8 percent from the end of 2015. The loan-to-deposit ratio was 90.3 percent increased from 89.4 percent at the end of the previous year.
Net profit for the third quarter of 2016 was Baht 8.1 billion, an increase of Baht 892 million or 12.4 percent from the second quarter of this year. Net interest income rose by Baht 470 million or 3.0 percent to Baht 16.1 billion, and the net interest margin increased to 2.33 percent as a result of managing the low-cost deposits. Non-interest income was Baht 10.9 billion, an increase of Baht 1.6 billion or 17.7 percent, due largely to gains on investments. Net fees and service income amounted to Baht 6.2 billion, an increase of Baht 181 million or 3.0 percent, due mainly to an increase in fee income from electronic services and remittances as well as from mutual funds and bancassurance. Operating expenses were Baht 12.1 billion, a decrease of Baht 504 million or 4.0 percent, mainly because of a reduction in expenses on premises and equipment and other expenses.
The Bank maintained capital reserves at a good level to support future business expansion. After the inclusion of the third quarter of 2016 net profit, the total capital adequacy ratio, Tier 1 capital ratio and common equity Tier 1 ratio of the Bank and its subsidiaries would be approximately 19.2 percent, 17.3 percent and 17.3 percent, respectively.
Shareholders' equity as of 30 September, 2016 amounted to Baht 370.9 billion or 12.9 percent of total assets. The book value per share was Baht 194.30, an increase of Baht 4.74 from the end of 2015.