Bangkok Bank reports first quarter net profit of Baht 9.4 billion
Stocks and Financial Services Press Releases Wednesday April 22, 2015 10:03
Bangkok–22 Apr–Bangkok Bank
Bangkok Bank and its subsidiaries have reported a consolidated net profit of Baht 9.4 billion for the first quarter of 2015, an increase of Baht 442 million or 4.9 percent from the first quarter of 2014. Net interest income rose by Baht 168 million or 1.2 percent while noninterest income grew by Baht 2.1 billion or 24.7 percent. Operating expenses rose by Baht 964 million or 10.2 percent.
The Bank’s performance came against a backdrop of a delayed economic recovery in the first quarter, with exports falling due to a slowdown in the economies of Thailand’s major trading partners, especially China, and private sector investment rising only slightly as businesses awaiting for the government to clarify its economic plans, including its timeframe for major infrastructure investments. Meanwhile private sector consumption is gradually recovering. These factors combined to reduce loan demand, while at the same time financial institutions were cautious about lending. At the end of March 2015, total lending was Baht 1,774.3 billion, a decrease of Baht 8.0 billion or 0.4 percent from the end of December 2014.
In terms of loan quality, at the end of March 2015 non-performing loans (NPLs) were Baht 47.5 billion, an increase of Baht 2.4 billion from the end of December 2014, while the ratio of non-performing loans to total loans was 2.2 percent, an increase from 2.1 percent, as some customers continued to be affected by the continued economic slowdown. The Bank had provisioning expenses of Baht 3.0 billion in the first quarter of 2015, representing a ratio of loan loss reserves to NPLs and a ratio of loan loss reserves to total loans of 189.9 percent and 5.1 percent, respectively.
Total deposits were Baht 2,118.0 billion, an increase of Baht 59.2 billion or 2.9 percent from the end of 2014. The loan-to-deposit ratio stood at 83.8 percent, a decrease from 86.6 percent.
Net interest income for the first quarter of 2015 amounted to Baht 14.2 billion. The net interest margin was 2.18 percent, a decrease from 2.32 percent in the fourth quarter of 2014, due partially to an increase in the deposit cost and volume which exceeded loan yield and volume, while yield from investments and yield from interbank and money market items declined.
Non-interest income amounted to Baht 10.8 billion, an increase of Baht 2.1 billion or 24.7 percent from the first quarter of 2014. This was mainly attributable to an increase in net fees and service income of Baht 1.2 billion or 22.8 percent, due to an increase in fee income from underwriting, securities business and lending.
Operating expenses were Baht 10.4 billion, an increase of Baht 964 million or 10.2 percent from the first quarter of 2014, due predominantly to increases in personnel and other expenses. The cost to income ratio was unchanged at 41.4 percent.
In terms of capital reserves, after the inclusion of net profit for the six months ending December 31, 2014 and of net profit for the first quarter of 2015 – along with a deduction of dividends to be paid in May 2015 – the total capital adequacy ratio, common equity Tier 1 ratio and Tier 1 capital ratio of the Bank and its subsidiaries would be approximately 18.3 percent, 16.2 percent and 16.2 percent, respectively.
Shareholders’ equity as of March 31, 2015 amounted to Baht 333.8 billion, equivalent to 11.8 percent of total assets. The book value per share was Baht 174.89, an increase of Baht 5.42 from the end of 2014.