Bangkok Bank 2nd quarter net profit up by 12.2 per cent
With the Thai economy expected to expand at a modest rate amidst ongoing uncertainties over the global economic recovery, Bangkok Bank continues its prudent approach on financial management.
The bank is maintaining liquidity and capital positions at levels sufficient to support future business expansion and cope with uncertainties that may arise, hoping to ensure financially sustainable business expansion, according to a Thursday press release.
Bangkok Bank and its subsidiaries’ net interest income for the second quarter of 2017 amounted to Bt16.6 billion, an increase of 6.2 per cent compared to the second quarter of last year, with a net interest margin of 2.31 per cent. Non-interest income amounted to Bt11.5 billion, an increase of 24.0 per cent, due predominantly to gains on investments and net fees and service income, which contributed mainly from fee income from mutual funds, bancassurance, and electronic services and remittances.
The Bank’s operating expenses were Bt12.8 billion, an increase of 2.0 per cent, with a ratio of expenses to operating income of 45.8 per cent. Net profit (attributable to the Bank) for the second quarter of 2017 amounted to Bt8 billion, an increase of 12.2 per cent from the same quarter last year.
At the end of June 2017, the Bank’s loans amounted to Bt1.97 trillion, an increase of 1.9 per cent from the end of 2016 due to an increase in loans to large corporates. The ratio of non-performing loans (NPLs) to total loans was 3.7 per cent due to the slow economic recovery impacting business solvency.
The Bank continues to closely monitor its loan quality and set aside appropriate provisioning expenses. Total allowances for doubtful accounts were Bt129.9 billion or 6.6 per cent of loans.
In terms of capital, with the inclusion of net profit for the six months ending June 30, 2017, the total capital adequacy ratio, the common equity Tier 1 capital adequacy ratio and the Tier 1 capital adequacy ratio of the Bank and its subsidiaries would be approximately 18.9 per cent, 17.1 per cent and 17.1 per cent, respectively.
Shareholders’ equity as of June 30, 2017, amounted to Bt384.5 billion or 12.6 per cent of total assets. The book value per share was Bt201.45, an increase of Bt2.89 from the end of 2016.
