Bangkok Bank reports first quarter net profit of Baht 6.6 B

Bangkok Bank has recorded a consolidated net profit for the first quarter of 2011 of Baht 6.6 billion.

This represents an increase of Baht 874 million or 15.3 percent from the previous quarter, or an increase of Baht 551 million, or 9.1 percent from the same quarter of the previous year.

Bangkok Bank’s President, Chartsiri Sophonpanich, said that the bank’s performance presented its progress in expanding loans, increasing deposits, and growing fee income, supported by dynamic improvement in Thai economy and banking system. The bank continues to maintain a robust liquidity and capital position.

Lending grew for the third consecutive quarter, rising to Baht 1,305.8 billion at the end of March, an increase of 49.2 billion or 3.9 percent from the end of 2010, or an increase of 159.8 billion or 13.9 percent from the end of March 2010. Loan expansion was driven by an increase in working capital requirements to meet the needs of a growing export sector along with domestic consumption, while there was also continuous demand for loans to support production improvements and business expansion.

Total deposits increased by Baht 51.8 billion or 3.7 percent compared with the end of last year, to Baht 1,446.2 billion as at March 31, 2011. Loan-to-deposit ratio stabilized at 90.3 percent, compared with 90.1 percent at the end of last year.

Net fee and service income rose by 7.7 percent from the previous quarter, or 10.8 percent compared with the same quarter of last year. Fee income this quarter was mostly attributable from electronic transactions, credit cards, and fund transfers, while fees for aval and guarantee and from bancassurance continued to grow steadily.

Operating expenses declined by 5.1 percent from the previous quarter, to Baht 8,099 million, although they increased by Baht 669 million, or 9.0 percent compared with the first quarter of 2010. Total income increased 6.3 percent from the same period last year.

Non-performing loans as at March 31, 2011 were Baht 43.4 billion. This represented 2.8 percent of total outstanding loans, compared with 3.0 percent at the end of 2010. Asset quality improved due to the bank’s success in debt restructuring and the economic recovery.

The bank set aside provisioning expenses for the quarter of Baht 1.8 billion. Loan loss reserves amounted to Baht 73.9 billion. The ratio of loan loss reserves to NPLs as of the end of March 2011 was 170.4 per cent.