Seven banks report Bt135 bn in combined profits
Seven listed banks reported a combined net profit last year |of Bt135.19 billion from Bt127.05 billion the year before, with the three most profitable banks |being Siam Commercial Bank (SCB), Kasikornbank (KBank) and TMB.
SCB reported a net profit of Bt53.33 billion, up by 6.2 per cent from the year before, while KBank reported Bt46.15 billion.
In terms of percentage growth, TMB has outperformed its peers for two consecutive years. It reported a net profit of Bt9.54 billion, garnering a 66-per-cent growth from Bt5.74 billion in 2013.
TMB registered a loan growth of 7 per cent and its lower loan-loss provision helped its profits to rise and helped better manage the bad debts. This lower provision also made its non-performing loans last year to improve to 2.85 per cent from 3.87 per cent the year before.
Krungsri (Bank of Ayudhya) announced net profits of Bt14.17 billion, a 19.5 per cent increase from Bt11.86 billion in 2013. The increased net profit was attributed to higher net interest income supported by loan growth of 7.3 per cent together with a lower loan-loss provision.
Last year was difficult for Thailand economically as the private sector and domestic consumption had slowed down. |This forced banks to set its provisions higher, which affected profits.
Of the banks that reported their 2014 results, seven posted single-digit loan growth with the exception of players in hire-purchase business, who witnessed a drop in loans.
Thanachart Capital, a holding company of Thanachart Bank, which is a major player in hire-purchase, underperformed in its net takings plunged by 44.52 per cent to Bt5.12 billion due to a drop in hire-purchase loans.
Though its hire-purchase business dropped by 10.04 per cent, Thanachart Capital’s non-performing loans improved from 4.74 per cent to 4.47 per cent.
Kiatnakin Bank, another player in the hire-purchase business, also underperformed last year. Its net profit dropped by 40.3 per cent to Bt2.63 billion because it set a high loan-loss provision of Bt1.53 billion in the fourth quarter, representing a growth of 168 per cent quarter on quarter.
NPLs at the bank remained unchanged at 5.6 per cent, |the highest ratio among its |peers.
Tisco Financial Group, a holding company of Tisco Bank, reported a 8.3-per-cent drop in loans, but maintained its net profit at Bt4.25 billion. It set a low loan-loss provision, reflecting that losses from repossessed vehicles had improved. NPLs at Tisco remained stable at 2.6 per cent.
In 2013, 10 listed banks recorded net profit of Bt167.48 billion, represented a growth of 22.47 per cent from Bt136.75 billion in 2012.
