Monday, July 20, 2009

Thailand's banks show mixed results in Q2

Bangkok Bank, the country's largest bank, saw its first-half net profit declined on year by Bt1 billion to Bt9.6 billion.

Krung Thai Bank also suffered from lower interest income, but higher non-interest income. Its second-quarter net profit however rose Bt291 million on year or 14.31 per cent, to Bt2.3 billion.

BBL's second-quarter net profit however dropped Bt213 million to Bt4.83 billion from Bt5 billion last year, according to the company's statement.

Total loans at the end of June 2009 were Bt1.1 trillion, a decline of 6.2 percent from the end of 2008. The decrease was primarily because some customers repaid loans taken out for

working capital on the back of decline in commodity price and purchase orders in line with the economic slowdown.

Total deposits as of June 30, 2009 were Bt1.4 trillion, an increase of Bt44.2

billion, or 3.4 percent, from the end of 2008. This reflects depositors' confidence in the strength of Bangkok Bank as well as our continue efforts to grow the deposit base.

As a result, the bank's loan-to-deposit ratio stood at 81.1 percent.

Fees and service income rose by 8.2 percent compared with the same quarter last year.

Non-performing loans (NPLs) fell by Bt1.7 billion resulting in a decline in the ratio of NPLs to total loans to 4.6 percent, compared with 4.8 percent as of March 31, 2009. The bank's capital adequacy ratio was 15.8 percent with the inclusion of the net profit for the first-half period. This strong capital position will provide the bank with continued strength to operate through this period of economic volatility.

Bangkok Bank President Chartsiri Sophonpanich said, "During the current economic slowdown, Bangkok Bank continues to maintain close relationship with customers, providing appropriate and timely support to those with good potential. This not only enables our customers to continue their business operations, which will benefit the economy as a whole, but also helps maintain the overall quality of our loans with satisfactory result."

Bangkok Bank's subsidiary ACL Bank however showed the 65.9 per cent increase in second quarter net profit, thanks to higher interest income and non-interest income.

Finance company Bangkok First Investment & Trust however swung to a net loss of Bt16 million in the second quarter, from the Bt51 million net profit in the same period last year.

Kasikornbank last week also showed the consolidated first-half net profit of Bt7.5 billion, down 13.83 per cent on year. The bank said that as of June 30, its outstanding loans stood at Bt881.65 billion and outstanding deposits at Bt909 billion. Its capital to risk assets ratio stayed at 15.91 per cent, while gross non-performing loans accounted for 3.74 per cent of outstanding loans.

In line with economic slowdown, most witnessed a drop in loan extension.

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