Bangkok--21 Jul--Bangkok Bank
Strong loan growth and a rise in both net interest income and non-interest income contributed to a 17.4% rise in Bangkok Bank's pre-tax profit for the first half of the year to Baht 13.6 billion, compared with the first half of last year. The bank's after-tax profit was Baht 9.6 billion, a reduction of Baht 2.0 billion compared with the first half of 2005 when the bank benefited from corporate income tax exemption.
Loans increased by 5.5% from Baht 912.0 billion at the end of 2005, to Baht 962.2 billion as at June 30, 2006. While growth was broadly based across all major customer segments, the bank saw stronger demand for lending from the corporate sector. The International Banking Group also reported good loan growth.
Despite strong competition among banks for deposit customers, total deposits at the end of June amounted to Baht 1,250.1 billion, an increase of Baht 93.5 billion, or 8.1 percent from the end of December last year.
Interest income in the first half rose by Baht 9.3 billion to Baht 35.5 billion, while interest expenses rose by Baht 6.4 billion to Baht 13.8 billion. As a result, the net interest margin in the first half of 2006 improved to 3.13%, up from 2.65% in the first half of 2005.
Non-interest income in the first half rose by 25.0% year-on-year to Baht 11.8 billion. Net gains on investment increased by Baht 802.0 million year-on-year. Fee income improved by 9.3% from the first half of 2005 to Baht 7.2 billion, largely due to increased usage of electronic banking and credit card services. Gains on foreign exchange also rose by 16.5% to Baht 1.7 billion. Non-interest expenses rose by 17.9% to Baht 17.2 billion with allowance for impairment of foreclosed properties increasing by Baht 942 million.
Non-performing loans increased from Baht 102.5 billion or 10.9% of total loans at the end of March 2006 to Baht 108.6 billion, equivalent to 11.2% of total loans. Provision expenses for the first half amounted to Baht 2.8 billion and total loan loss reserves at the end of June 2006 amounted to Baht 77.2 billion or 71.1 percent of non-performing loans.
Shareholders' equity rose by Baht 3.5 billion for the six-month period, to Baht 142.7 billion at the end of June 2006.
Including the first half profit, Bangkok Bank's capital adequacy ratio was approximately 14.58%, while the Tier 1 capital ratio was approximately 11.68%.
For more information please contact
Promporn Vejjajiva
Bangkok Bank Public Relations Department
02-230-2709