Bangkok Bank reports a net profit of Baht 10,524 million for the first quarter of 2024

Friday 19 April 2024 14:17
Thailand's overall economy in the first quarter of 2024 continued to expand, underpinned by the service sector as the number of foreign tourists, especially Chinese tourists as a result of the government's visa exemption policy. However, Thailand's exports declined in tandem with subdued demand from trading partners. Public spending contracted from both capital expenditures and regular government expenditures since the budget for the fiscal year 2024 is in the process of finalization. Going forward, important factors that still need to be closely monitored include the uncertainty of the world economy, the effect from central banks maintaining high interest rates to control inflation, China's economic slowdown due to problems in the real estate sector as well as trade and technology conflicts with the US, and global geopolitical tensions.
Bangkok Bank reports a net profit of Baht 10,524 million for the first quarter of 2024

Amidst an uncertain economic situation, trade conflicts and global geopolitics, increasing proposition about the environment, society and governance, shifts in government policies and regulations, advances in technology and new innovations still affect business operations. As a "trusted partner and reliable close friend", the Bank focuses on providing advice for customers to adapt their business operations. This includes promoting the development of necessary skills and knowledge for continuous adaptation, supporting the creation of partnerships in the business ecosystem, and reinvesting in environmentally friendly economic activities. In addition, the Bank supports customers to benefit from opportunities to grow their operations overseas for sustainable growth.

Bangkok Bank reports a net profit of Baht 10,524 million for the first quarter of 2024

Bangkok Bank and its subsidiaries reported a net profit of Baht 10,524 million in the first quarter of 2024, an increase of 18.7 percent from the fourth quarter of last year. Net interest income declined due to an increase in interest expenses on deposits, following the gradual rise in interest rates from maturing deposits. This resulted in a net interest margin of 3.06 percent. Non-interest income increased as a result of investment income as well as net fees and service income from better performance of bancassurance and mutual fund services. Operating expenses decreased while the cost to income ratio stood at 47.1 percent. As part of its continuous prudent management, the Bank set aside Baht 8,582 million in expected credit losses to accommodate uncertainties going forward.

Bangkok Bank continues to operate under its prudent management approach and retains financial, liquidity and capital positions at a healthy and appropriate level to deliver strong and sustainable growth

At the end of March 2024, the Bank's total loans amounted to Baht 2,736,427 million, an increase of 2.4 percent from the end of last year from 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 3.0 percent. Under the Bank's continuous prudent management approach, the ratio of the allowance for expected credit losses to non-performing loan remained strong at 291.7 percent.

As of March 31, 2024, the Bank's deposits amounted to Baht 3,198,332 million, a similar level to the end of last year, while the loan to deposit ratio stood at 85.6 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 19.7 percent, 16.3 percent and 15.6 percent respectively, comfortably above the Bank of Thailand's minimum capital requirements.

Source: Bangkok Bank