Bangkok Bank reports 2024 net profit of Baht 45,211 million
Thailand’s economy in 2024 continued to grow steadily, driven primarily by the recovery of tourism and exports. The number of international tourists has soared due to visa exemption measures and tourism promotion activities.
Exports have also maintained strong growth, especially in electronics, agricultural products, and agro-manufacturing goods, bolstered by the recovery of the global economywhich will provide momentum for further growth in 2025. However, several challenges remain to be monitored including trade barrier measures from major trading partners, fluctuations in energy and commodity prices stemming from international conflicts, and the high level of household debt, which could undermine long-term economic stability.
While the Thai economy is on a positive trajectory, it still faces several challenges. These include the intensifying impact of climate change, which requiresbusinesses to adhere to international environmental policies and standards. The rapid advancement of technology and new innovations is driving businesses to adjust to match with the digital age. In addition, external competition and increasing uncertainty in the future, particularly the policies of major economies, pose further challenges. Bangkok Bank, as a ‘trusted partner and reliable close friend,’ continues to focus on supporting customers with both financial resources and knowledge that keep pace with changes in the modern business world. The Bank also aims to enhance customers’ competitiveness in the dynamic technological landscape and prepare them to conduct business under the principles of environmental sustainability. Additionally, the Bank supports customers to tap into opportunities to expand their businesses internationally. At the same time, the Bank places importance on prudent management, together with adhering to responsible lending guidelines with an emphasis on social responsibility and sustainable growth.
Bangkok Bank reported a net profit of Baht 45,211 million for 2024
The Bank and its subsidiaries reported a net profit for 2024 of Baht 45,211million, an increase of 8.6 percent from last year. Net interest income increased by 2.3 percent from loan expansion and yields on earning assets, offsetting theincreased cost of deposits. This resulted in a net interest margin of 3.06 percent. Non-interest income increased mainly from gains on financial instruments measured at Fair Value Through Profit or Loss (FVTPL) and gains on investmentsin line with market conditions. Fee income increased from credit cards,bancassurance and mutual fund services that continued to perform well. Operating expenses increased mainly due to operational efficiency improvements and marketing expenses, while the Bank continued to focus on cost management, resulting in a lower cost to income ratio of 48.0 percent. According to the Bank’s prudent provisioning, the expected credit losses decreased in the fourth quarter of 2024. As a result, the expected credit losses of 2024 were Baht 34,838 million, a similar level to last year.
Bangkok Bank continues to operate under its prudent management approach and retains financial, liquidity and capital positions at a healthy andappropriate level to deliver strong and sustainable growth
At the end of December 2024, the Bank’s total loans amounted to Baht 2,693,301 million, an increase of 0.8 percent from the end of last year, driven by loans to large corporate customers and loans made through the Bank’s international network. The non-performing loan to total loans ratio remained manageable at 2.7 percent. Under the Bank’s continuous prudent managementapproach, the ratio of the allowance for expected credit losses to non-performing loan remained strong at 334.3 percent.
As of December 31, 2024, the Bank’s deposits amounted to Baht 3,169,654million, a decrease of 0.5 percent from the end of last year with the loan to deposit ratio of 85.0 percent. The total capital adequacy ratio, Tier 1 capital adequacy ratio, and Common Equity Tier 1 capital adequacy ratio of the Bank and its subsidiaries stood at 20.4 percent, 17.0 percent and 16.2 percent, respectively, comfortably above the Bank of Thailand’s minimum capital requirements.
BBL reports net profit of Baht 34,807 million for the nine months of 2024
