Political uncertainties weigh on BBL's quarterly earnings
Bangkok Bank, the country's largest commercial bank, showed the second-quarter consolidated net profit of Bt9 billion, an increase of only Bt64 million from the previous quarter.
"Political uncertainties lowered the confidence of businesses and households. Together with a slow recovery in exports and limits to government spending, this resulted in lower loan demand for both working capital and business expansion, as companies awaited signs of economic recovery and clarity on government policy," the bank said in a statement.
In the quarter, its net interest income rose by Bt895 billion from the previous quarter, while non-interest income edged up by Bt612 million. Operating expenses rose at the same level, by Bt1.5 billion.
Its outstanding loans rose only Bt11.9 billion or 0.7 per cent from the end of 2013 to Bt1.76 trillion as of June 30. While corporate lending dropped, the bank witnessed an increase in SME, mortgage and international loans.
The slight increase in the net profit was also attributable to the provision of additional Bt2.3 billion in the quarter, which increased its reserves to NPLs ratio to 216 per cent.
Indicating a shift of saving to other tools, the bank saw a 1.6 per cent drop in deposits in the first six months. The deposits at the end of June stood at Bt1.9 trillion. the loan-to-deposit ratio rose from 90.6 per cent at the end of 2013 to 92.7 per cent.
