Bangkok--20 Oct--BBL
* Loan quality improves, non-performing loans decline
* Fees and service income rise 15.8 percent
* Strong capital ratio of 16.0 percent underpins growth opportunities
Bangkok Bank recorded a net profit for the three months to September 30 of Baht 5.0 billion, up 3.6 percent from the second quarter of 2009 (qoq), and 18.8 percent higher from the third quarter of 2008 (yoy).
The result comes against the background of a Thai economy that has been contracting for several quarters, but which is beginning to show signs of recovery, with improvement in exports and support from government spending. Business and consumer confidence has also begun to increase.
Bangkok Bank President Chartsiri Sophonpanich said, "While it is still too early to assess with certainty the pace or sustainability of economic recovery, the bank's third-quarter improvement reflects in part better business conditions for our customers. Our continued focus on looking after asset quality and on maintaining a strong financial position will allow us to benefit from the opportunities ahead. Through it all, we will be working closely with our customers to ensure they receive the support they require, as well as targeting good-quality new customers."
"During the quarter, we saw increased demand from new customers and new loan extensions from the current ones, but due to repayments by certain large customers, our net loans have declined slightly."
Although total loans were down, their rate of decline slowed markedly during the third quarter. Total loans fell slightly by 0.8 percent qoq to Baht 1,090.6 billion, after declining 6.2 percent in the year's first-half.
"The bank was successful in achieving its four major targets of continuing a healthy level of liquidity, increasing fees and service income, looking after loan quality, and maintaining a solid capital position."
Total deposits as of September 30, 2009 were Baht 1,333.5 billion, 1.7 percent higher from the start of the year but down 1.6 percent qoq. Liquidity, as measured by loan-to-deposit ratio, was 81.8 percent.
Fees and service income rose by 15.8 percent yoy. This was due largely to higher income from investment banking operations, as the bank supported bond issues by its corporate customers, and to further growth in electronic banking services, bancassurance and mutual funds.
The bank's disciplined approach to cost containment resulted in its operating expenses declining by 1.8 percent qoq and 2.6 percent yoy.
Non-performing loans (NPLs) fell by Baht 773 million qoq to Baht 56.8 billion. The ratio of NPLs to total loans was 4.7 percent.
With the inclusion of Q3 net profit, the bank maintained its capital adequacy ratio at a healthy 16.0 percent and its Tier 1 capital ratio at 13.1 percent. The bank's strong balance sheet means it is well positioned to support the higher financing requirements of existing customers as well as targeting new ones.
Shareholders' equity as at September 30, 2009 was Baht 188.5 billion with third-quarter earnings per share of Baht 2.62 and book value per share of Baht 98.75.
For more information, please contact: Promporn Vejjajiva Tel: 0-2530-2709