Bangkok Bank reports Q1 net of Bt8.3 bn, similar to a year earlier
April 20, 2017 19:39 By The Nation
Bangkok Bank has reported first-quarter net profit of Bt8.3 billion
In a press release, the bank noted that the Thai economy had expanded at a modest rate, driven by a pick-up in public spending and investment as well as exports, while private consumption and investment continued to expand at a gradual pace.
However, it said, the economy is to some degree influenced by the recovery of the global economy, which despite having a better outlook still faces considerable uncertainty.
Against this backdrop, the bank said it was continuing its prudent approach to financial management, maintaining liquidity and capital reserves at levels sufficient to cope with uncertainties that may arise, and to support future business expansion to ensure the bank’s financial sustainability.
Bangkok Bank and its subsidiaries reported a net profit for the first quarter of 2017 of Bt8.3 billion, a similar level to the first quarter of last year, with net interest income of Bt16.3 billion, an increase of 1.5 per cent, and a net interest margin of 2.35 per cent.
Non-interest income amounted to Bt10.9 billion, an increase of 2.5 per cent, due predominately to an increase of 10.1 per cent in net fees and service income from the increase in fee income from mutual funds, bancassurance, electronic services and remittances.
Meanwhile, gains on trading and foreign-exchange transactions and gains on investments decreased. Operating expenses were Bt11.1 billion, a decrease of 13.8 per cent, due to the decline in provisions for contingencies.
Non-performing loans (NPLs) at the end of March amounted to Bt77.8 billion, with a ratio of NPLs to total loans at 3.5 per cent due to the slow economic recovery affecting the solvency of businesses.
Nevertheless, the bank said it continued to monitor its loan quality closely and set aside appropriate provisioning expenses. In the quarter, provisioning expenses amounted to Bt5.8 billion, and consequently total allowances for doubtful accounts were Bt124.4 billion or 6.5 per cent of loans.
In terms of capital, with the inclusion of net profit for the six months between July and December 2016 and of net profit for the first quarter of 2017 minus the May 2017 dividend payment, the total capital adequacy ratio, the common equity Tier 1 capital adequacy ratio and the Tier 1 capital adequacy ratio of the bank and its subsidiaries would be approximately 19.0 per cent, 17.2 per cent and 17.2 per cent respectively.
Shareholders’ equity as of March 31 amounted to Bt385.9 billion or 12.9 per cent of total assets. The book value per share was Bt202.17, an increase of Bt3.61 from the end of 2016.