Bangkok Bank and its subsidiaries’ net interest income amounted to Baht 16.8 billion, an increase of 4.7 percent compared to the third quarter of last year, with a net interest margin of 2.30 percent. Non-interest income was Baht 11.7 billion, an increase of 7.0 percent, due predominantly to gains on investments and net fees and service income, contributed mainly by mutual funds, bancassurance, and loan-related fees. The Bank’s operating expenses were Baht 11.9 billion, a decrease of 1.3 percent, with an expenses to operating income ratio of 41.9 percent. Net profit (attributable to the Bank) for the third quarter of 2017 was Baht 8.2 billion, an increase of 1.2 percent from the same quarter last year.

 

At the end of September 2017, the Bank’s loans were Baht 1,938.6 billion, a similar level to the end of 2016. The ratio of non-performing loans (NPLs) to total loans was 3.8 percent. The Bank continues to closely monitor its loan quality and set aside appropriate provisioning expenses. Total allowances for doubtful accounts were Baht 135.8 billion or 7.0 percent of loans.

 

In terms of capital, in September 2017 the Bank of Thailand (BOT) announced the guidelines for identifying and regulating Domestic Systemically Important Banks (D-SIBs). Bangkok Bank, which is classified as a D-SIB, is required by the BOT to hold additional capital for Higher Loss Absorbency (HLA) by gradually increasing its additional capital ratio by an  increment of 0.5 percent from January 1, 2019 until completion of the increment to 1.0 percent in January 1, 2020 onwards. For the Bank, with the inclusion of net profit for the third quarter 2017, 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 19.10 percent, 17.33 percent and 17.33 percent, respectively. Our capital adequacy ratios are adequate to support the additional capital adequacy ratio as the guidelines on D-SIBs. Shareholders’ equity as of September 30, 2017, amounted to Baht 393.0 billion or 12.8 percent of total assets. The book value per share was Baht 205.89, an increase of Baht 7.34 from the end of 2016.

 

In terms of the Bank’s operating results for the third quarter of 2017, compared with the second quarter of 2017, net interest income rose by Baht 257 million or 1.6 percent due to the increase in interest income from interbank and money market items and loans, while interest expenses on deposits increased from higher deposit volume. Non-interest income increased by Baht 179 million or 1.6 percent due to the increase in gains on investments and net fees and service income increased, partly due to an increase in fee income from mutual funds and bancassurance, while dividend income and gains on disposal of assets decreased. However, operating expenses declined by Baht 908 million, due predominantly to a decrease in premises and equipment expenses and other expenses. Impairment loss of loans and debt securities rose by Baht 571 million or 10.0 percent. Consequently, net profit (attributable to the Bank) in the third quarter of 2017 amounted to Baht 8.2 billion, an increase of Baht 114 million or 1.4 percent from the second quarter of 2017.

 

Compared with the third quarter of 2016, net interest income rose by Baht 759 million or 4.7 percent, mainly due to the increase in interest income from interbank and money market items and loans, while interest expenses from deposits increased in line with an increase in deposit volume. Non-interest income rose by Baht 764 million or 7.0 percent, largely due to an increase in gains on investments and net fees and service income, predominately from fee income from mutual funds, bancassurance and loan-related services, while gains on tradings and foreign exchange transactions and dividend income declined. Impairment loss of loans and debt securities rose by Baht 1.3 billion, while operating expenses decreased by Baht 157 million. Consequently, net profit (attributable to the Bank) rose by Baht 100 million or 1.2 percent from the same quarter of 2016.

 

In the first nine months of 2017, non-interest income increased by Baht 3.3 billion or 10.6 percent from the first nine months of 2016, due mainly to the increase in gains on investments and net fees and service income, an increase in fee income from mutual funds, bancassurance, electronic services and remittances. Net interest income rose by Baht 2.0 billion or 4.1 percent, due mainly to higher interest income from interbank and money market items, due to an increase in transaction volume. Operating expenses decreased by Baht 1.7 billion or 4.5 percent, due mainly to a decrease in provisions for contingencies. Impairment loss on loans and debt securities rose by Baht 5.6 billion or 46.3 percent. Net profit (attributable to the Bank) amounted to Baht 24.5 billion, an increase of Baht 966 million or 4.1 percent from the first nine months of 2016.

 

Net interest income in the third quarter of 2017 amounted to Baht 16.8 billion, an increase of Baht 257 million or 1.6 percent from the second quarter of 2017, due to an increase of Baht 539 million or 2.1 percent in interest income, mainly from an increase of Baht 303 million or 14.8 percent in interest income from interbank and money market items resulting from an increase in transaction volume and an increase of Baht 252 million or 1.1 percent in interest income from loans. Interest expenses rose by Baht 282 million or 2.9 percent, due largely to an increase of Baht 226 million or 4.2 percent in interest expenses from deposits as a result of higher deposit volume. The net interest margin decreased by 0.01 percent from the previous quarter to 2.30 percent.

 

Compared with the third quarter of 2016, net interest income rose by Baht 759 million or 4.7 percent, due to an increase of Baht 1.3 billion or 4.9 percent in interest income. Significant items included an increase of Baht 770 million or 48.8 percent in interest income from interbank and money market items due to an increase in transaction volume and yield which is in line with market yield, and an increase of Baht 478 million or 2.2 percent in interest income from loans due to an  increase in lending volume. Interest expenses rose by Baht 493 million or 5.2 percent, mainly from an increase of Baht 327 million or 6.3 percent in interest expenses on deposits due to an increase in deposit volume. The net interest margin decreased by 0.03 percent from the same quarter last year.

 

In the first nine months of 2017, net interest income amounted to Baht 49.7 billion, an increase of Baht 2.0 billion or 4.1 percent from the first nine months of 2016, due predominantly to an increase of Baht 1.5 billion or 32.4 percent in interest income from interbank and money market items caused by an increase in transaction volume and yield which is in line with market yield, and a decrease of Baht 437 million or 2.7 percent in interest expenses on deposits due to the expansion of low-cost deposits of savings and current accounts, and a decrease in the cost of deposits. The net interest margin decreased slightly by 0.01 percent from the same period last year to 2.32 percent.

 

Non-interest income in the third quarter of 2017 amounted to Baht 11.7 billion, an increase of Baht 179 million or 1.6 percent from the second quarter of 2017, mainly due to an increase of Baht 869 million in gains on investments and an increase of Baht 227 million in net fees and service income, due to an increase in fee income from mutual fund, bancassurance and securities businesses. Dividend income decreased by Baht 605 million and gains on disposal of assets decreased by Baht 387 million. Consequently, the ratio of net fees and service income to operating income stood at 23.2 percent, 0.5 percent higher than the previous quarter.

 

Compared with the third quarter of 2016, non-interest income rose by Baht 764 million or 7.0 percent. Significant items included an increase of Baht 1.0 billion from gains on investments and an increase of Baht 442 million in net fees and service income due to an increase in fee income from mutual funds, bancassurance, loan-related services, and electronic services and remittances. Gains on tradings and foreign exchange transactions decreased by Baht 432 million and dividend income decreased by Baht 303 million.

 

In the first nine months of 2017, non-interest income amounted to Baht 34.1 billion, an increase of Baht 3.3 billion or 10.6 percent from the first nine months of 2016, due to an increase in gains on investments of Baht 2.4 billion. Net fees and service income rose by Baht 1.5 billion, due mainly to the increase in fee income from mutual funds, bancassurance, electronic services and remittances, and loan-related services.

 

Operating expenses in the third quarter of 2017 amounted to Baht 11.9 billion, a decrease of Baht 908 million or 7.1 percent from the second quarter of 2017. Significant items included decreases in premises and equipment expenses of Baht 507 million and other expenses of Baht 477 million.

 

Compared with the third quarter of 2016, operating expenses decreased by Baht 157 million or 1.3 percent, due to a decrease of Baht 106 million in personnel expenses and a decrease of Baht 52 million due partly to lower provisions for contingencies.

 

In the first nine months of 2017, operating expenses amounted to Baht 35.9 billion, a decrease of Baht 1.7 billion or 4.5 percent from the first nine months of 2016. Significant items included a decrease of Baht 1.7 billion in other expenses due to lower provisions for contingencies.