By THE NATION
Net interest income increased by 0.4 per cent while the net interest margin improved slightly to 2.36 per cent. Non-interest income fell by 1 percent as a result of lower gains on trading and foreign exchange transactions and a minimal decline in net fees and service income.
The decline in net fees and service income was caused by lower fees from securities business in line with capital market conditions, while fees from bancassurance and mutual funds rose.
As a consequence, the ratios of net interest income and non-interest income to operating income held steady at about 57 per cent and 43 per cent respectively, similar to levels in the same period last year, as a result of the Bank's intention to diversify its sources of income. The ratio of expense to operating income stood at 45.3 per cent.
At the end of June 2019, bank loans amounted to Bt2,017,314 million, a slight drop from the previous quarter, owing to a decline in loans to businesses and loans made through the bank's international network.
The ratio of non-performing loans (NPL) to total loans was 3.5 per cent, the same level as the previous quarter. The bank continued to focus on prudent control over credit underwriting, ensuring loan quality, and maintaining doubtful accounts at an appropriate level.