• April 19, 2017
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Bangkok Bank releases Q1 2017 results

In the first quarter of 2017, the Thai economy expanded at a modest rate, driven by a pickup in public spending and investment as well as exports, while private consumption and investment continued to expand at a gradual pace. However, the Thai economy is, to some degrees, influenced by the recovery of the global economy, despite having a better outlook, which still faces a considerable degree of uncertainty. Against this backdrop, the Bank continues its prudent approach on 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 have reported a net profit for the first quarter 2017 of Baht 8.3 billion, a similar level to the first quarter of last year, with net interest income of Baht 16.3 billion, an increase of 1.5 percent, and a net interest margin of 2.35 percent. Non-interest income amounted to Baht 10.9 billion, an increase of 2.5 percent, due predominately to an increase of 10.1 percent 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 Baht 11.1 billion, a decrease of 13.8 percent, due to the decline in provisions for contingencies.

The Bank’s loans at the end of March 2017 amounted to Baht 1,924.0 billion, a decrease of 0.9 percent from the end of 2016, which decreased in loans to medium-sized and small businesses, consumer sector and loans made through the Bank’s international network. Nonperforming loans (NPLs) at the end of March 2017 amounted to Baht 77.8 billion with the ratio of NPLs to total loans at 3.5 percent due to the slow economic recovery impacting the solvency of businesses. Nevertheless, the Bank continues to closely monitor its loan quality and set aside appropriate provisioning expenses. In this quarter, provisioning expenses amounted to Baht 5.8 billion, consequently total allowances for doubtful accounts were at Baht 124.4 billion or 6.5 percent of loans.

In terms of capital, with the inclusion of net profit for the six months between July – 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 percent, 17.2 percent and 17.2 percent, respectively. Shareholders’ equity as of March 31, 2017, amounted to Baht 385.9 billion or 12.9 percent of total assets. The book value per share was Baht 202.17, an increase of Baht 3.61 from the end of 2016.

Re-disseminated by The Asian Banker