Bangkok Bank reports a net profit of Baht 10,129 million
Bangkok Bank reports a net profit of Baht 10,129 million for the first quarter
The Thai economy continued to expand in the first quarter of 2023, driven mainly by an increase in the number of foreign tourists, which promoting employment and private consumption. At the same time, exports show signs of rebounding after contractions in the previous period. Looking ahead, the Thai economy continues to face risks from the subduing global economy, persistent inflationary pressure, prolonged geopolitical conflicts, and episodes of banking stresses in advanced economies. These are important factors that need to be closely monitored.
Amid the ongoing economic uncertainties, Bangkok Bank continues to place importance on prudent risk management, together with maintaining its financial stability, liquidity, and capital at an appropriate level. Meanwhile, Bangkok Bank places a high value on working closely with customers and advising them on how to modify their business model in response to the changing market situation, including digital technology, new innovations, environmental, social, and governance trends. This is to create value for customers to grow their businesses in a sustainable way in line with our philosophy to be a trusted partner and reliable close friend.
Bangkok Bank reports a net profit of Baht 10,129 million for the first quarter of 2023
Bangkok Bank and its subsidiaries reported a net profit of Baht 10,129 million in the first quarter of 2023, increasing from the fourth quarter of 2022. Net interest income was at a similar level to the previous quarter from higher interest income following the rise in interest rates, offsetting higher interest expenses due to the increase in deposit rate and the resumption of the FIDF fee at a normal rate of 0.46 percent. The net interest margin was 2.84 percent. Non-interest income increased mainly from gains on financial instruments measured at FVTPL in line with the market situation, and net fees and service income slightly increased. The cost to income ratio declined to 46.8 percent. In accordance with the Bank’s prudent management,the expected credit losses were set aside at Baht 8,474 million, considering global economic volatility that may affect the Thai economy’s recovery in the future.
Bangkok Bank maintains a healthy financial position, robust liquidity and capital positions under its prudent management approach for sustainable growth
At the end of March 2023, the Bank’s loans amounted to Baht 2,640,090 million, a slight decrease of 1.6 percent from the end of 2022, due mainly to
loans to business customers and loans made through the Bank’s international network. The ratio of non-performing loans to total loans was at a manageable level of 3.1 percent. Given the Bank continues to set aside expected credit losses in line with its prudent approach, the ratio of allowance for expected credit losses to non-performing loan remained strong at 265.1 percent.
As of March 31, 2023, the Bank’s deposits amounted to Baht 3,205,989 million, the same level as the end of 2022. The loan to deposit ratio was 82.3 percent. Meanwhile, the total capital adequacy ratio, Tier 1 capital adequacy ratio,and Common Equity Tier 1 capital adequacy ratio of the Bank and its subsidiaries were 19.2 percent, 15.7 percent and 14.9 percent respectively, comfortably abovethe Bank of Thailand’s minimum capital requirements.
