Bangkok Bank Reports 12.6 Billion Baht Q1 Profit

Bank navigates slowing Thai economy and global uncertainties to achieve strong first-quarter results

 

Bangkok Bank has announced a net profit of 12.618 billion baht for the first quarter of 2025, a 19.9% increase compared to the same period last year.

 

The bank noted that the Thai economy showed signs of slowing in Q1 2025, with private investment down amid uncertainty over global trade.

 

While automotive production saw a modest rebound, manufacturing remained under pressure. Growth in the services sector was tempered by a decline in Chinese tourist numbers and spending, although tourism was supported by growth from other nationalities.

 

Exports showed tentative signs of recovery despite global economic uncertainty. Subdued price pressures reflected weak domestic demand.

 

The bank cited key risks to Thailand's 2025 economic outlook, including US trade policy uncertainty, geopolitical volatility in energy and commodity prices, and high household debt, which could constrain domestic consumption and private sector confidence.
  

Bangkok Bank emphasised its commitment to supporting customers through these challenges by providing financial resources and expertise.

 

The bank also highlighted its focus on responsible lending, social responsibility, and sustainable growth.

 

The 19.9% year-on-year increase in net profit was primarily driven by total operating income. Net interest income reached 31.909 billion baht, with a net interest margin of 2.89%, in line with market interest rate trends.

 

Growth in net fees and service income was driven by loan-related fees, bancassurance, and mutual fund services, alongside gains on financial instruments and investments.

 

Operating expenses increased, but the bank reported improved operational efficiency, with a cost-to-income ratio of 45.5%.

 

The bank set aside 9.067 billion baht for expected credit losses, similar to the same quarter last year.
  

At the end of March 2025, total loans stood at 2,720.983 billion baht, a 1.0% increase from the end of last year, driven by loans to large corporate customers.

 

The non-performing loan ratio remained at a manageable 3.0%, with a strong allowance for expected credit losses to non-performing loan ratio of 300.3%.

 

As of March 31, 2025, deposits reached 3,225.131 billion baht, a 1.8% increase from the end of last year, with a loan-to-deposit ratio of 84.4%.

 

The bank's total capital adequacy ratio, Tier 1 capital adequacy ratio, and Common Equity Tier 1 capital adequacy ratio were 21.0%, 16.5%, and 15.8%, respectively, exceeding the Bank of Thailand's minimum capital requirements.

(2025/04/17-00:00)