Bangkok--20 Oct--Bangkok Bank
Bangkok Bank posted a net profit for the quarter ended September 2006 of Baht 4.2 billion, compared to Baht 4.4 billion in the second quarter. This was mainly due to a change in valuation of collateral by the Thai Asset Management Corporation (TAMC).
However, overall performance saw improvements in both net interest income and fee income.
Interest income for the quarter increased by Baht 1.3 billion or 6.9 percent to Baht 20.1 billion while interest expenses rose by Baht 1.0 billion or 12.5 percent. As a result, net interest income increased by Baht 272 million to Baht 10.8 billion and the net interest margin improved from 2.94 percent in the second quarter to 2.97 percent for this quarter.
Fee income continued to improve, increasing by 6.7 percent to Baht 3.8 billion in the third quarter, compared to Baht 3.5 billion in the second quarter. Gains on foreign exchange transactions remain relative stable at Baht 934 million. As a result, non-interest income increased by 5.6 percent to Baht 5.7 billion.
Non-interest expenses this quarter declined across most categories. However, the bank incurred a special one-time charge of Baht 2.8 billion relating to a change by the TAMC in the valuation of mortgages on machinery, resulting in a decline in the value of the assets transferred to the TAMC.
Loans increased by 4.8 percent from December 2005 to Baht 955.7 billion. Growth was from both domestic and international operations. Deposits at the end of September were Baht 1,217.9 billion, an increase of 5.3 percent from December 2005. The loan-to-deposit ratio was 78.5 percent compared to 78.9 percent at the end of 2005.
Non-performing loans declined by Baht 5.2 billion from June to Baht 103.4 billion in September while the ratio of non-performing loans to total loans declined from 11.2 percent to 10.7 percent.
Provisioning remained relatively steady at Baht 1.2 billion for the quarter. Reserve coverage was fairly stable at 71.3 percent with total loan loss reserves of Baht 73.7 billion at the end of September.
Shareholders' equity increased by Baht 4.1 billion from the end of June to Baht 146.8 billion. The capital adequacy ratio and the Tier 1 capital ratio at the end of September were approximately 14.6 percent and 11.7 percent, respectively.