Poor economy puts pressure on BBL's performance
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Bangkok Bank's first-half earnings slid by 3.1 per cent from the same period last year due to poor loan growth and the worsening quality of loans.
The bank announced that the half-year consolidated net profit dropped by Bt552 million on year to Bt17.4 billion.
At the end of June, the bank's outstanding loans increased by only 0.4 per cent or Bt7.4 billion to Bt1.79 trillion. Coupled with lower interest rates, the net interest margin was 2.08 per cent, down from 2.37 per cent in the second half of 2014.
However, the non-performing loans (NPLs) reached Bt55.1 billion, rising from 2.2 per cent of total loans in the first quarter to 2.5 per cent. In the six-month period, provisioning expenses were Bt5.9 billion, representing a ratio of loan loss reserves to NPLs of 170.4 per cent and a ratio of loan loss reserves to total loans of 5.2 per cent.
The bank's capital adequacy ratio stood at 18.5 per cent at the end of June.
The bank's non-interest income in the first half rose by Bt4.2 billion or 23.3 per cent from the same period last year to Bt22.1 billion.
