Bangkok--Oct 20--Bangkok Bank
Bangkok Bank posted a net profit of Baht 16.4 billion for the first nine months of 2005. This is an increase of 33.9% compared with the same period last year.
The main contributors to the improved profit result were an increase in net interest income of Baht 5.8 billion or 25.4% for the nine-month period, and fee income which rose by Baht 1.1 billion or 12.0%.
The year-to-date net interest income amounted to Baht 28.9 billion. The strong growth in net interest income is a result of a significant increase in interest income of Baht 5.3 billion on the back of improved loan yields, coupled with a decrease in interest expenses of Baht 0.5 billion, due primarily due to the redemption and restructuring of the Capital Augmented Preferred Securities (CAPS) in early April 2004.
Fee income for the nine-month period totalled Baht 10.1 billion, an increase of 12.0% from the same period last year, primarily from payment and remittance services and credit card services. Meanwhile, income from foreign exchange increased by 9.5% to Baht 2.1 billion. However, the increase in overall non-interest income was a relatively modest Baht 343 million due to an impairment charge on the bond portfolio of Baht 1.3 billion in the third quarter.
Non-interest expenses rose by 9.3% to Baht 22.1 billion, with personnel expenses increasing by Baht 1.2 billion or 19.4%. This was mainly due to salary increases and a special one-month bonus announced in July.
Total loans at the end of September 2005 amounted to Baht 946.1 billion, a net increase of Baht 13.2 billion from December 2004. Non-performing loans declined slightly from December to Baht 157.4 billion or 16.5% of total loans at the end of September. The Bank set aside provisioning of Baht 1.0 billion in the third quarter; as a result total loan loss reserves amounted to Baht 102.4 billion or 65.1% of non-performing loans.
Shareholders’ equity increased by Baht 20.0 billion to Baht 135.0 billion. The Bank redeemed the remaining CAPS on September 29, 2005. As a result the tier 1 capital ratio, including the nine-month profit, was approximately 11.0 percent, while the total capital adequacy ratio for the Bank stood at approximately 14.3 percent at the end of September.
The Bank incurred partial income tax expenses of Baht 284.7 million in the third quarter which was equivalent to 5.6% of quarterly profit before tax. End.