Listed banks’ combined net profit falls by 6.3% last year
The 11 listed banks have reported combined net profit of Bt198.50 billion for 2015, down by 6.3 per cent from Bt211.78 billion in 2014, after taking substantial loan-loss provisions.
Krungthai Bank’s net profit decreased by 14.2 per cent to Bt28.49 billion as a consequence of rising non-performing loans |from small and medium-sized enterprises and corporate customers in the retail and steel industries.
Combined with the prudent banking practice of maintaining coverage ratios at an appropriate level, the bank provided for bad debts, doubtful accounts and impairment losses to the tune of Bt24 billion, consisting of monthly normalised provisions of Bt700 million and an additional provision of Bt30.54 billion throughout last year.
This was a whopping increase of Bt11.89 billion or 63.8 per cent from last year.
Kasikornbank reported a similar decline of 14.5 per cent in net profit to Bt39.47 billion from setting aside a higher allowance for impairment losses on loans amounting to Bt12.13 billion.
KBank also recorded an extraordinary expense from setting a Bt2.3-billion allowance for impairment of application software in order to manage the cost of its information-technology system.
SCB?posts highest profit
Among the 11 banks, Siam Commercial Bank reported the highest net profit of Bt47.18 billion but also the deepest drop of Bt53.33 billion, or 11.5 per cent, due mainly to high provisions include full provisioning for the case of Sahaviriya Steel Industries.
Tisco Bank, another creditor of SSI, reported net profit of Bt4.25 billion, unchanged from the previous year.
Bangkok Bank’s net profit fell 6 per cent to Bt34.18 billion, attributed to a 2.5-per-cent shortfall in net interest income.
Net profit at Bank of Ayudhya surged 31.6 per cent to Bt18.85 billion thanks to the integration of the loan portfolio from Bank of Tokyo-Mitsubishi UFJ.
Land and Houses Bank and Kiatnakin Bank also enjoyed double-digit earnings growth in 2015.
LH Bank’s net profit jumped by 37.5 per cent to Bt1.65 billion and KKP’s by 20.9 per cent to Bt3.3 billion.
Analysts expect the earnings of the banking industry this year to improve from last year based on hoped-for government investment. However, high loan loss provisions and the economic slowdown will continue to pressure profitability.
Bank loans will grow in tandem with gross domestic product, not faster as in past years, because the banking industry needs to control asset quality in order to tackle the bad debt and reduce provisions, which have hurt its profit, an analyst at Asia Plus Securities said yesterday.
Sucheera Pinijparakarn
The Nation
The 11 listed banks have reported combined net profit of Bt198.50 billion for 2015, down by 6.3 per cent from Bt211.78 billion in 2014, after taking substantial loan-loss provisions.
Krungthai Bank’s net profit decreased by 14.2 per cent to Bt28.49 billion as a consequence of rising non-performing loans |from small and medium-sized enterprises and corporate customers in the retail and steel industries.
Combined with the prudent banking practice of maintaining coverage ratios at an appropriate level, the bank provided for bad debts, doubtful accounts and impairment losses to the tune of Bt24 billion, consisting of monthly normalised provisions of Bt700 million and an additional provision of Bt30.54 billion throughout last year.
This was a whopping increase of Bt11.89 billion or 63.8 per cent from last year.
Kasikornbank reported a similar decline of 14.5 per cent in net profit to Bt39.47 billion from setting aside a higher allowance for impairment losses on loans amounting to Bt12.13 billion.
KBank also recorded an extraordinary expense from setting a Bt2.3-billion allowance for impairment of application software in order to manage the cost of its information-technology system.
SCB?posts highest profit
Among the 11 banks, Siam Commercial Bank reported the highest net profit of Bt47.18 billion but also the deepest drop of Bt53.33 billion, or 11.5 per cent, due mainly to high provisions include full provisioning for the case of Sahaviriya Steel Industries.
Tisco Bank, another creditor of SSI, reported net profit of Bt4.25 billion, unchanged from the previous year.
Bangkok Bank’s net profit fell 6 per cent to Bt34.18 billion, attributed to a 2.5-per-cent shortfall in net interest income.
Net profit at Bank of Ayudhya surged 31.6 per cent to Bt18.85 billion thanks to the integration of the loan portfolio from Bank of Tokyo-Mitsubishi UFJ.
Land and Houses Bank and Kiatnakin Bank also enjoyed double-digit earnings growth in 2015.
LH Bank’s net profit jumped by 37.5 per cent to Bt1.65 billion and KKP’s by 20.9 per cent to Bt3.3 billion.
Analysts expect the earnings of the banking industry this year to improve from last year based on hoped-for government investment. However, high loan loss provisions and the economic slowdown will continue to pressure profitability.
Bank loans will grow in tandem with gross domestic product, not faster as in past years, because the banking industry needs to control asset quality in order to tackle the bad debt and reduce provisions, which have hurt its profit, an analyst at Asia Plus Securities said yesterday.
