Bangkok--20 Jan--BBL
*Deposits increase by Baht 31.5 billion
*Loans grow by Baht 10.8 billion in Q4
*Fees and service income rises 9.5 percent
Bangkok Bank has reported its results for 2009 with a stable net profit of Baht 20.0 billion, an increase of 0.02 percent or Baht 4 million from the previous year. Profit before provisioning and tax amounted to Baht 35.8 billion, 0.7 percent or Baht 258 million higher than 2008.
The bank was able to maintain its operating results because the economy began to recover in the final quarter of 2009 following the recessionary period that had started in the fourth quarter of 2008. Contributing to the result were the bank's strong fundamentals and financial strength, and its ability to achieve its four major targets: maintaining a healthy level of liquidity, increasing fees and service income, looking after loan quality, and maintaining a solid capital position.
Bangkok Bank President Chartsiri Sophonpanich said, "Throughout 2009 we concentrated on working closely with our customers. This approach allowed us to provide appropriate and timely financial support so that our customers could operate their businesses smoothly, both when difficult economic conditions were difficult and when the economy began to improve."
The bank's total loans in the fourth quarter of 2009 rose by Baht 10.8 billion, or 1.0 percent, from the end of the third quarter. Total outstanding loans fell by 6.0 percent over the full year, an improvement from the 6.9 percent decline in the nine months to September 30, 2009, reflecting the start of the economic recovery. If loans of the bank's former branches in China - which have now been transferred to Bangkok Bank (China) - had been included, total outstanding loans would have risen by 3.9 percent in the fourth quarter. Total outstanding loans for the whole year would have declined by 3.3 percent.
The bank successfully grew its deposit base and achieved its objective of maintaining a healthy level of liquidity. Deposits rose by Baht 31.5 billion, or 2.4 percent, from the end of 2008 to Baht 1,343.0 billion as of December 31, 2009. The loan-to-deposit ratio stood at 82.0 percent.
Fees and service income in 2009 rose by Baht 1.6 billion or 9.5 percent, in line with the bank's major targets. The increase was due to greater contributions from several products and services, including electronic transactions, deposit-related services, bancassurance, mutual funds, and investment banking operations.
"The increased fees and service income resulted from Bangkok Bank's ability to satisfy customers' needs by providing a wide variety of financial products and services, and extensive networks, supported by staff's ability to match these needs with the appropriate offerings," said Mr. Chartsiri.
In a challenging business environment, the bank was able to control its operating expenses well with an increase of 2.0 percent year-on-year.
The bank's focus on maintaining close relationships with customers and practicing a cautious lending policy resulted in the bank's non-performing loans declining from Baht 54.6 billion at the end of 2008 to Baht 53.8 billion at the end of 2009. The ratio of NPLs to total loans at year-end was 4.4 percent.
Among the bank's achievements in 2009 was the formation of Bangkok Bank (China) Co. Ltd, a wholly-owned subsidiary, which opened as a locally incorporated bank in China on December 28, 2009. An enhanced presence in China, combined with Bangkok Bank's extensive branch network in Asia, will enable the bank to provide greater support to customers doing business throughout the region and will strengthen its status as a regional bank.
Bangkok Bank maintained its solid capital position. With the inclusion of net profit for the second half of 2009, the bank's capital adequacy ratio at year-end would have been approximately 16.4 percent with the Tier 1 capital ratio approximately 13.5 percent. The bank's financial strength indicates it is well positioned to support the greater financial needs of existing customers as well as expanding to target new ones.
Shareholders' equity as at December 31, 2009 was Baht 194.7 billion with earnings per share of Baht 10.5 and book value per share of Baht 102.0.