Bangkok Bank announced a net profit of THB10.524 billion for Q1 2024.
Thailand's economy saw growth, particularly in the service sector, driven by increased Chinese tourist arrivals due to visa exemptions. However, exports declined amid subdued global demand, and public spending contracted pending finalization of the fiscal year 2024 budget.
Key concerns include global economic uncertainty, central banks' high-interest rate policies, China's real estate sector issues, trade tensions with the US, and geopolitical risks.
In response to these challenges, Bangkok Bank positions itself as a trusted advisor and ally, aiding customers in adapting to changing landscapes.
This involves fostering skills, fostering partnerships, and investing in eco-friendly practices. Despite challenges, the Bank's subsidiaries saw an 18.7% profit increase to THB10,524 billion, with net interest income affected by rising deposit rates. Non-interest income rose from investments and service fees, with operating expenses down and a cost-to-income ratio of 47.1%. Prudent management included setting aside THB8.582 billion for expected credit losses.
The Bank's total loans grew by 2.4%, reaching THB2.736427 trillion, mainly to large corporates and through its international network. Non-performing loans were manageable at 3.0%, supported by a strong allowance for expected credit losses ratio of 291.7%. Deposits remained steady at THB3.198332 trillion, maintaining a loan-to-deposit ratio of 85.6%. Capital adequacy ratios exceeded regulatory requirements, standing at 19.7%, 16.3%, and 15.6% for total, Tier 1, and Common Equity Tier 1 capital, respectively, by March 31, 2024.
