Despite the fact that the Thai economy recovered from the effect of the Covid-19 pandemic, it is likely to face challenges in global economic uncertainty going forward. As such, Bangkok Bank places a high value on closely monitoring both business and individual customers to assist them in dealing with future economic challenges while also taking into account their current situations. The Bank works as a trusted partner and reliable close friend to advise businesses on how to adjust their business model to meet the needs of the changing business landscape, including digital technology, future world innovation, environmental, social and governance issues, and the needs to create opportunities for sustainable business. At the same time, the Bank emphasizes the importance of prudent risk management, together with maintaining its financial stability, liquidity and
strong capital positions.
Bangkok Bank reports an increase of 10.6 percent in net profit for 2022
In 2022, Bangkok Bank and its subsidiaries report a net profit of Baht 29,306 million, an increase of 10.6 percent from 2021. Net interest income rose by 24.4 percent due to higher loan volume and interest rates. The net interest margin increased to 2.42 percent in line with the rising interest rate trend and the Bank's liquidity management. Non-interest income declined by 30.0 percent mainly due to lower gains on financial instruments measured at FVTPL in line with the market situation,as well as lower net fees and service income from the securities business, bancassurance and mutual funds, while fees from loan related and trade finance services increased. The cost to income ratio stood at 49.7 percent. The Bank set aside Baht 32,647 million in expected credit losses, a decrease of 4.4 percent from last year.
This is consistent with the Bank's prudent management by taking into account global economic volatility which may affect the recovery of the Thai economy going forward.
Bangkok Bank maintains a healthy financial position, high liquidity and capital positions under its prudent management approach for strong and sustainable growth
At the end of December 2022, the Bank's total loans amounted to Baht 2,682,691 million, an increase of 3.6 percent from the end of last year, due mainly to increase in loans to large corporate customers and loans made through the international network. The non-performing loan to total loans ratio remained manageable at 3.1 percent. Under the Bank's continuous prudent management approach, the ratio of the allowance for expected credit losses to non-performing loans remained strong at 260.8 percent.
As of December 31, 2022, the Bank's deposits amounted to Baht 3,210,896 million, an increase of 1.7 percent from the end of December 2021. While the loan to deposit ratio stood at 83.5 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 19.1 percent, 15.7 percent and 14.9 percent respectively, comfortably above the Bank of Thailand's minimum capital requirements.
Source: Bangkok Bank