Profits up for most banks in first-half 2017 

Net profit dropped for some banks, including Krung Thai Bank and LH Bank. Krung Thai Bank had to increase its allowance for doubtful debts worth Bt4.97 billion, while LH Bank also faces rising costs.
Bank of Ayudhya Plc, also known as Krungsri, and its business units announced a solid performance for the first half of 2017 with a net profit of Bt11.5 billion, representing a 10.5 per cent increase from the same period last year. 
The bank’s president and executive officer Noriaki Gogo said at press release yesterday that the bank’s non-performing loans, recorded at 2.24 per cent, improved from 2.33 per cent in the first quarter of last year with a strong coverage ratio of 143.6 per cent.
For the outlook for the remainder of the year , it projects the Thai economy gaining further traction, and a record 3.4 per cent growth for 2017 driven mainly by strong expansion of exports, the tourism sector and government spending. Private investment and consumption are also expected to continue to increase. Attributing it to a favourable operating environment, Krungsri maintains a full-year loan growth target of 6 to 8 per cent.
Thanachart Bank Plc reported net profit of Bt6.6 billion, up 10.01 per cent from the same period last year thanks to the positive feedback from its marketing strategy framing it as “Main Bank” of choice for customers. Consequently, the bank’s revenue base also expanded while the risk arising from poor quality assets remained well managed, said the bank’s president and chief executive officer, Somjate Moosirilert.
CIMB Thai Bank posted net profit of Bt477.8 million in the first half of this year, an increase of 30.1 per cent from same time last year. Its net interest margin (NIM) is recorded 3.81 per cent in the first half of this year, marginally better than 3.79 per cent from the same period of last year. 
Kittiphun Anutarasoti, CIMB Thai Bank’s president and chief executive officer, pronounced its half-year performance satisfactory. The bank is on track to turn profitable over the rest of this year.
TMB Bank reported a pre-provision operating profit (PPOP) of Bt9.89 billion in the first half of this year, an increase of 10 per cent compared to the same period last year. TMB maintained its prudent provisioning and set aside a relatively high provision of Bt4.52 billion in the first half of this year, an increase of 17 per cent when compared to the same period in 2016. The non-performing loans (NPL) ratio slightly increased to 2.56 per cent and the coverage ratio then remained high at 140 per cent. 
TMB Bank’s chief executive officer, Boontuck Wungcharoen, said that TMB’s operating performance continuously improved because of the bank’s commitment to meeting customer needs, and the twin philosophy of being a “need-based bank” and “simple and easy”, TMB remains prudent in its business operation and focus to ensure asset quality and a strong coverage ratio, he added. 
Kasikorn Bank’s president Predee Daochai yesterday announced through a press release net profit of Bt19.15 billion for the first half of 2017, very close to the Bt19.07 billion performance for the same period of 2016. Its interest income increased by Bt2.10 billion or 4.76 per cent, and NIM stood at 3.42 per cent. 
Krung Thai Bank also announced a net profit of Bt12.52 billion in the first half of this year a drop of 25.63 per cent from the same period last year. This follows from the bank having to increase to allowance for doubtful debts worth Bt4.97 billion, bank president Payong Srivanic said at press release yesterday.
However, the bank has confidence its business will grow in the second half of this year, he said.
LH Financial Group Plc also reported net profit of Bt1.2 billion in the first half of this year, a drop from Bt1.37 billion in the same period of last year. The second quarter of this year recorded net profit of Bt616.5 million, a drop from Bt802.15 million in the same period last year.