Bangkok--21 Oct--Bangkok Bank
Highlights for the third quarter of 2008
- Year-to-date loan growth of 13.1%
- NPL ratio declined to 5.6%
- Provisions in excess of regulatory requirements amounted to Baht 21.9 billion
- Net Interest Margin increased to 3.37%
Bangkok Bank reported preliminary results for the third quarter of 2008, with a net profit of Baht 4.2 billion, after taking impairment expenses on investment amounting to Baht 3.1 billion. Excluding the said impairment expenses, pre-provisioning operating profit would have been Baht 10.3 billion, an increase of Baht 1.2 billion or 12.6 percent from the previous quarter. This reflected the increase in revenue coming from higher net interest income, fee income and gain on exchange and the decrease in costs.
In the first nine months of 2008, total loans grew by 13.1 percent, or Baht 135.1 billion, to Baht 1,170.5 billion. Furthermore, there was good progress on the resolution of non-performing loans which declined by Baht 14.6 billion to Baht 67.1 billion. The ratio of NPLs to total loans declined from 7.9 percent at the end of December 2007 to 5.6 percent at the end of September 2008.
Net interest income in the third quarter of 2008 increased by Baht 1.6 billion or 13.2 percent from the corresponding period last year to Baht 13.4 billion. Higher loan volumes and increased yields resulted in higher interest income while interest expenses declined by Baht 1.1 billion. Therefore, the net interest margin improved from 3.14 percent to 3.37 percent.
Fee income in this quarter increased by Baht 248 million or 6.1% from the same period last year to Baht 4.3 billion, mostly from higher fees from guarantees, credit cards and bancassurance services. Gain on exchange declined slightly from last year to Baht 1.0 billion.
As a result of the volatility of the financial markets in the United States, the valuation of the debt securities of Lehman Brothers Holdings USA has been impacted. The Bank therefore took full impairment charges for the investment in the debt securities issued by the company, amounting to Baht 3.1 billion, resulting in the gain and loss on investment account showing a loss of Baht 2.5 billion while other expenses increased by Baht 142 million.
As a result of annual salary increases, special cost-of-living allowances and an increase in staff numbers, personnel expenses in this third quarter increased from the previous year by Baht 469 million to Baht 3.4 billion. Due to the increase in the branch network, premises and equipment expenses increased by Baht 103 million to Baht 1.7 billion.
Provisioning expenses in the third quarter amounted to Baht 1.1 billion, and cumulative loan loss reserves at the end of September 2008 amounted to Baht 60.4 billion, with a coverage ratio of 90.0 percent of NPLs. Provisions in excess of regulatory requirements amounted to Baht 21.9 billion.
Shareholders’ equity as at 30 September 2008 was Baht 167.3 billion. Including the net profit for the third quarter of 2008, the capital adequacy ratio and the Tier 1 capital ratio remained strong at approximately 15.0 percent and 12.3 percent respectively.
The earnings per share for the first nine months of 2008 amounted to Baht 7.78 per share.
For more information please contact:
Tel: 0-2230-2709 (Tang)
Tel: 0-2230-1375 (Big)
Tel: 0-2353-5348 (Gift)