Bangkok Bank reports profit uptick of 6.2%

Two listed banks including Bangkok Bank (BBL) have reported positive net profits for the first nine months of the year, while another two banks posted lower profits.
BBL, the country’s largest lender by total assets, along with its subsidiaries posted a net profit of 34.8 billion baht for the first three quarters of 2024, up 6.2% year-on-year. The bank attributed the improved performance to a 4.4% rise in net interest income, according to the bank’s statement filed with the Stock Exchange of Thailand (SET).
As of September 2024, BBL’s net interest margin (NIM) was 3.05%, supported by effective liquidity management and improved yields on earning assets.
Non-interest income benefited from higher investment income, aligning with market conditions, and fee income from bancassurance and mutual fund services, which continued to show robust growth.
The bank’s conservative management approach and substantial loan-loss provisions in prior periods caused expected credit losses (ECLs) to decrease to 8.19 billion baht in the third quarter, according to the filing. For the first nine months of the year, total ECLs were 27.2 billion baht, consistent with the same period of 2023.
“The bank’s ECLs reflect its consistent risk management strategy, considering various economic challenges such as China’s stimulus measures, geopolitical tensions, and the upcoming US presidential election,” BBL stated in its filing to the SET.
At the end of September 2024, BBL’s total loans amounted to 2.63 trillion baht, a decline of 1.2% from 2.67 trillion at the end of 2023. However, loans to large corporate clients continued to expand.
TMBThanachart Bank (ttb) and its subsidiaries reported a net profit of 15.9 billion baht for the first nine months of the year, marking a 17.1% year-on-year increase.
The growth was driven by an improved NIM, well-managed funding and operating costs, and stable asset quality. However, loans contracted in a challenging economic environment, according to ttb’s filing to the SET.
As of September, the bank’s total loan portfolio was 1.20 trillion baht, down 3.3% quarter-on-quarter and 5.6% year-to-date.
Given economic uncertainty, the bank reaffirmed its commitment to a prudent strategy, focusing on selectively growing a high-quality portfolio and efficiently optimising liquidity until conditions support returns that are justified by risk, according to its filing.
In contrast, Tisco Financial Group, the holding company of Tisco Bank, reported a lower net profit of 5.19 billion baht for the first nine months of 2024, down 5.82% year-on-year. The decline was attributed to an increase in ECLs, which reached 0.6% of average loans, as part of the group’s strategy to normalise ECLs and prepare for potential risks stemming from fragile economic conditions.
As of September 2024, Tisco Bank’s total loans tallied 300 billion baht, down 1.5% quarter-on-quarter and 2.1% year-to-date. The bank’s core auto loan portfolio fell to 101 billion baht, down 1.8% quarter-on-quarter and 5.3% year-to-date, as the bank maintained a cautious underwriting policy amid weak domestic car sales.
LH Financial Group, the holding company of Land and Houses Bank (LH Bank), recorded a net profit of 1.47 billion baht for the first nine months of 2024, a 15.7% year-on-year decline. This drop was attributed to lower gains on investments and reduced dividend income.