Bangkok--21 Apr--BBL
Net profit rises by 24.7 percent Fees and service income up 17.9 percent Capital adequacy ratio strengthens to 16.4 percent
Bangkok Bank has recorded a consolidated net profit Baht 6.1 billion, an increase of Baht 1.2 billion, or 24.7 percent from the same quarter of the previous year. Bangkok Bank President Chartsiri Sophonpanich said the bank's improved performance was partly because of the continuing economic recovery, domestically and internationally, which has benefited investment and exports. The government's economic stimulus policies have also helped lift the confidence of businesses and households. In addition, the bank's ability to meet its customer needs, both existing and new ones, and support them through their financial challenges, has been a significant factor.
"Our major targets for this year are expanding our lending and growing our fee income, as well as maintaining our robust liquidity and capital positions. The economy continues to improve, and with our financial stability and strong customer base we are well-placed to benefit from any opportunities that may arise."
First-quarter lending was Baht 1,146.0 billion, remained unchanged from the previous quarter. Fees and service income rose by 7.6 percent from the previous quarter, and was 17.9 percent higher year-on-year. The increase was attributable to a stronger performance in several areas, particularly bancassurance, electronic transactions, credit card, and fund transfer.
The bank maintained its liquidity at a satisfactory level with its loan-to-deposit ratio as at March 31, 2010 remaining high at 85.5 percent and its capital adequacy ratio, including profit but excluding dividends, at a healthy 16.4 percent.
Net interest income improved by Baht 194 million, while net interest margin declined from 2.99 percent in the same period last year to 2.89 percent. Non-interest income also increased, by Baht 1.7 billion or 26.0 percent, mainly due to an increase in fees and service income and gains on sales of foreclosed properties.
The bank satisfactorily contained its costs with non-interest expenses rising only Baht 104 million, or 1.1 percent, from the first quarter of 2009, and falling by 6.5 percent from the previous quarter, to Baht 9.8 billion. Cost-to-income ratio dropped to 47.4 percent. Non-performing loans (NPLs) as at March 31, 2010 was Baht 56.4 billion. This represented 4.3 percent of total outstanding loans compared to 4.4 percent at the end of 2009.
The bank set aside provisioning expenses of Baht 2.1 billion for this quarter. Loan loss reserve amount to Baht 67.0 billion. The ratio of loan loss reserve to NPLs was 118.8 percent.
Shareholders' equity as at March 31, 2010 was Baht 206.2 billion. With the inclusion of net profit for the second half of 2009 and the first quarter of 2010, less dividend payments due in May 2010, the bank's capital adequacy ratio was 16.4 percent and its Tier 1 capital ratio 13.4 percent. This strong capital position means the bank is stable and well positioned for any future businesses activities.