Bangkok Bank reports Bt9-bn first quarter 2018 net profit
The Thai economy continued to expand primarily due to growth in the export and tourism sectors, consistent with an increase in global demand, the Bangkok Bank reported in a media release as it announced a 5.2 per cent quarterly increase in net interest income compared to last year.
For the first quarter of 2018, Bangkok Bank and its subsidiaries’ net interest income amounted to Bt17.1 billion, an increase of 5.2 per cent from the first quarter in 2017, with a net interest margin of 2.34 per cent.
Non-interest income was Bt14.4 billion, an increase of 31.8 per cent, due predominantly to an increase in net fees and service income and gains on investments. The increase in net fees and service income was mainly attributed to a rise in fee income from mutual funds and loan-related services.
The Bank’s operating expenses were Bt12.6 billion, an increase of 13.6 per cent, while the ratio of expenses to operating income dropped to 39.9 per cent. Consequently, net profit attributable to owners of the Bank was Bt9 billion, an increase of 8.4 per cent from the first quarter of last year.
Thailand is structurally transitioning into an innovation driven economy, with the government’s infrastructure development programme supporting the nation’s position as a logistics hub for the Southeast Asia region, according to the Bank’s release.
These developments serve to strengthen three major trends which have been guiding Bangkok Bank’s business direction in recent years –regionalisation, urbanisation and digitalisation.
The Bank’s business philosophy to be “puan koo kit mit koo baan” (a trusted partner and reliable close friend), and the Bank has positioned itself to support customers in a rapidly changing world, according t the release.
At the end of March 2018, the Bank’s loans amounted to Bt1.97 billion, a decrease of 1.3 per cent from the end of 2017, due to business and consumer loans, as well as loans made through the Bank’s international network. The ratio of non-performing loan (NPL) was 3.8 per cent. In line with what the Bank said is its “prudent approach of setting aside adequate provisioning expenses”, the Bank’s total allowances for doubtful accounts amounted to Bt146.8 billion to provide a cushion against any uncertainty or new regulations.
Shareholders’ equity as of March 31, 2018, amounted to Bt405.5 billion. The book value per share was Bt212.41, an increase of Bt1.96 from the end of 2017.