Bangkok Bank’s net profits surge by 52.2% in H1

This follows after a 36% increase in the bank’s net interest income during the period.

Bangkok Bank and its subsidiaries reported a net profit of approximately $620m (THB21.423b) in the first six months of 2023, a 52.2% jump compared to the same period last year, according to its latest financial report.

A 36% increase in the bank’s net interest income following a rise in interest rates drove the profit gain. Net interest margin rose to 2.88% during the period.

Despite its strong performance, Bangkok Bank noted uncertainties in the global economy and challenges to Thailand’s economy. It also noted uncertainties surrounding the context of environment, social, and governance (ESG) factors.

“Business operations continue to face challenges from a new competitive environment as well as opportunities from wider markets, led by digital technologies and innovations that have dramatically changed in the recent years, along with the need for businesses to meet ESG requirements and volatility in the financial markets,” Bangkok Bank stated in its report.

Net fees and service income was at a similar level to the first half of 2022, Bangkok Bank reported. Operating expenses, however, notably rose by 18.3% following “an increase in economic activities.”

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Cost to income ratio declined to 47.1%.

As of end-June, total loans amounted to $78.17b (THB2,698 billion), rising 0.6% from the end of 2022, mainly due to an increase in loans to large corporate customers and loans.

The ratio of non-performing loans to total loans was 2.9%. 

Deposits were on a similar level as of end-2022, at almost $92.71b (THB3,200.155 billion). The loan to deposit ratio stood at 84.3%.