Bangkok Bank reports third quarter 2019 net profit of Baht 9,438 million

Stocks and Financial Services Press Releases Friday October 18, 2019 17:59
Bangkok--18 Oct--Bangkok Bank

In 2019, the Thai economy is forecast to expand at a slower rate than in 2018. Slowing global growth, intensifying trade tensions and the unrelentingly strong Baht have weighed on both exports and tourism. Meanwhile, private consumption and private investment slowed in line with declining car sales and a pullback in the real estate sector. The elevated household debt and the impacts from natural disasters also contributed to the decline in private consumption. A fall in manufacturing production and capacity utilization contributed to subdued private investment. Public consumption continued to grow slower than expected following a delay in forming the new administration.

Third quarter earnings up 4.5%

For the third quarter of 2019, Bangkok Bank and its subsidiaries posted a net profit attributable to owners of the Bank of Baht 9,438 million, an increase of 4.5 percent from the third quarter of 2018. It was mainly from an increase of 9.6 percent in net fees and service income, driven by higher fee from bancassurance and mutual funds according to the Bank's strategic intent. Net interest income decreased slightly by 1.7 percent as a result of loan contraction and the net interest margin stood at 2.35 percent.

Operating expense decreased marginally by 1.5 percent from the same quarter last year reflecting the well-disciplined on cost management. The cost to income ratio was 41.9 percent.
Strong balance sheet and capital position

At the end of September 2019, loan amounted to Baht 2,001,445 million, moderately decreased of 0.8 percent from the previous quarter, owing to a decline in loan to business in line with economic slowdown, coupled with some loan repayments by large corporate. The non-performing loan (NPL) ratio was at 3.6 percent with strong loan loss reserves to NPL at 183.4 percent. The Bank continued to focus on prudent control over credit underwriting and risk management to ensure loan quality and maintain the allowance for doubtful accounts at the appropriate level.

The Bank's balance sheet remained healthy with robust capital and liquidity positions. At the end of third quarter 2019, loan to deposit ratio was at 84.7 percent. On September 25, 2019, the Bank issued 15-year Subordinated Notes qualified as Basel III-complaint Tier 2 capital amounted to USD 1,200 million, which supported the Bank's well mixed of capital structure to be even stronger. As of September 30, 2019, total capital adequacy ratio, Common Equity Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratio of the Bank and its subsidiaries were 20.7 percent, 17.7 percent and 17.7 percent respectively, which are comfortably above the Bank of Thailand's minimum capital requirements.


Latest Press Release

Philippines a top foreign investment destination with 613% surge in approved investments

- BOI Figures Show +600% Rise by September 2019 with South Korea Topping Foreign Investments from East Asia New data has unveiled a surge in BOI approved foreign investments which are expected to flow into the Philippines over the next 2-3 years. These...

Dont Ever Miss Asia Crypto Investment Forum (ACIF) a Regional Digital Asset Event and a Gathering of Prominent Experts from BTC.com, BITMAIN, Bitkub, as well as a Raft of Leading Companies Held in Thailand on this November 28th

Don't ever miss Asia Crypto Investment Forum (ACIF), a regional digital asset event organized in Thailand on this upcoming 28 November 2019. Let's be in touch with a vigorous team of cryptocurrency experts led by Ms. Paphy Cai from BTC.com, the leading...

mai welcomes 3D design and printing solution distributor APP on November 22

Market for Alternative Investment (mai) will list Applicad pcl (APP), a leading distributor of a complete range of 3D design and printing solutions, on November 22, under the ticker symbol "APP", with a market capitalization at its initial public...

Remitly, Xpress Money Partner to Expand Cross-border Money Transfer Services

Remitly, the online remittance service used by nearly two million people, and Xpress Money, a Finablr company, have come together to increase cross-border payout options for customers in Asia and Africa. This partnership leverages Xpress Money's global...

Fitch Assigns Thai Reinsurance IFS Rating of #A-#; Outlook Stable

Fitch Ratings has assigned Thai Reinsurance Public Company Limited (THRE) an Insurer Financial Strength (IFS) Rating of 'A-' (Strong). The Outlook is Stable. KEY RATING DRIVERS The IFS Rating on THRE reflects the company's 'Favourable' business profile,...

Related Topics