Bangkok Bank reported a net profit of 12,476 million baht in Q3/67, an increase of 9.9% from the same period last year, while net profit for the first 9 months of 2024 was 34,807 million baht, an increase of 6.2%. Net interest income increased by 4.4%, provisions decreased.
In the third quarter of 2024, the Thai economy continued to expand, supported by government spending and investment, increased Thai exports in line with demand from trading partners, and foreign direct investment. In the last quarter of the year, the Thai economy is expected to continue to expand, supported by recovering tourism, government economic stimulus measures, exports, and expansion of foreign investment. However, important factors to monitor include the impact of the floods, China’s economic stimulus measures, geopolitical tensions, especially in regions important for global energy supplies, and the US presidential election later this year.
Although the Thai economy is expanding, there are still other factors that are challenge
s or may be business opportunities, such as climate change that affects the global context to pay more attention to the environment, society and governance, changes in government policies and regulations, and advances in technology and innovation. As a ‘Friend and Trustee’, Bangkok Bank continues to focus on providing advice to customers to prepare for doing business by promoting the development of skills and knowledge necessary for continuous change, as well as taking care of and helping Thai businesses to adapt to environmental sustainability and supporting customers to benefit from opportunities to expand their businesses abroad. At the same time, the bank continues to conduct business with caution and adheres to the responsible lending approach, emphasizing social responsibility and sustainable growth.
Bangkok Bank and its subsidiaries reported a net profit for the first nine months of 2024 of 34,807 million baht, an increase of 6.2 percent from the same period last year. Net interest income increased by
4.4 percent from the Bank’s liquidity management and yield on earning assets, offset by higher cost of deposits in line with the interest rate environment. This resulted in a net interest margin of 3.05 percent. Non-interest income increased from investment income in line with market conditions and fee income from bancassurance and mutual fund services that continued to grow well. Operating expenses increased from expenses for development and improvement of operating efficiency and marketing expenses. The Bank maintained its cost to income ratio at a level close to the same level as the same period last year of 46.3 percent. As the Bank continued to make prudent provisions, in the third quarter of 2024, the Bank set aside lower expected credit losses. As a result, expected credit losses for the first nine months of 2024 amounted to 27,204 million baht, which was close to the same level as the same period last year. Bangkok Bank continues to operate its business with prudence and caution, while maintaining fin
ancial stability, liquidity, and capital at an appropriate level for stable and sustainable growth.
As of the end of September 2024, the Bank had loans of 2,638,697 million baht, down 1.2 percent from the end of the previous year, with loans to large corporate customers continuing to grow. The ratio of impaired loans to total loans stood at 3.4 percent, which is at a manageable level, while the ratio of allowances for credit losses to impaired loans was strong at 266.6 percent, resulting from the Bank’s continued prudent and prudent approach to provisioning. As of the end of September 2024, the Bank had deposits of 3,109,982 million baht, down 2.3 percent from the end of the previous year, and a loan-to-deposit ratio of 84.8 percent. The total capital ratio, Tier 1 capital ratio, and Common Equity Tier 1 capital ratio of the Bank and its subsidiaries stood at 20.8 percent, 17.4 percent, and 16.6 percent, respectively, which were above the minimum capital ratios set by the Bank of Thailand.
Source: Thai New
s Agency
