BBL's profit reaches Bt35.9bn
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Bangkok Bank, Thailand's largest commercial bank, reported the consolidated net profit of Bt35.9 billion in 2013, showing an increase of 12.7 per cent from the previous year.
Among the top four, Siam Commercial Bank showed the net profit of Bt50 billion in 2013, followed by Kasikornbank's Bt41 billion.
In a statement, BBL said that it witnessed an increase in net interest income and non-interest income.
Its net interest margin decreased from 2.55 percent in 2012 to 2.36 percent in 2013, due to the rising cost of deposits while loan yield declined.
Non-interest income in 2013 rose 16.8 per cent or Bt5.1 billion to Bt35.6 billion, due mainly to an increase in net fees and service income, net gains on investments and gains on trading and foreign exchange transactions.
Meanwhile, operating expenses rose 2.2 per cent on year or Bt801 million to Bt37.9 billion due to higher employee expenses and higher premises and equipment expenses. The cost-to-income ratio was 41.5 per cent.
The cost increased as the bank's loan growth exceeded deposit growth. The loan-to-deposit ratio increased from 87.4 per cent at the end of 2012 to 90.6 per cent at the end of 2013. Its deposits expanded by Bt100.6 billion or 5.5 per cent to Bt1.935 trillion.
The bank's outstanding loans ended the year at Bt1.75 trillion, an increase of Bt148.3 billion or 9.2 per cent from the end of 2012. Meanwhile, the non-performing loans (NPLs) stood at Bt43.2 billion, or 2.2 per cent of outstanding loans. The ratio of loan loss reserves to NPLs increased to 214.2 per cent.
If net profit for the second half of 2013 was included, its capital adequacy ratio would be 17.7 per cent, with tier-1 ratio at 15.2 per cent.
