driven mainly by the tourism sector following an increase in the number of foreign tourists, which contributed to the improvement in private confidence and consumption. Meanwhile, exports were dampened by subdued global demand. Looking ahead,
the Thai economy continues to face risks from global economic uncertainties, especially from high and persistent inflation as well as the possibility of a sluggish economy and recession in major economies, global financial market volatility,
and prolonged geopolitical tensions. These are important factors that need to be closely monitored.
Although the Thai economy continued to expand, the global economy remained uncertain due to the volatility in financial markets and the changes in
the new global context towards the environment, society and governance (ESG). Business operations continued 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 is aware of customers facing challenges in conducting business, therefore the bank continues working closely with our customers
to transform their business according to the changing environment while enhancing opportunities for international business expansion.
Bangkok Bank reports a net profit of Baht 21,423 million for the first half of 2023
The Bank and its subsidiaries report a net profit for the first half of 2023 of Baht 21,423 million, an increase of 52.2 percent from the same period last year.
This is due mainly to an increase in net interest income of 36.0 percent following
the rise in interest rates from higher yields on earning assets, net of an increase
in cost of deposits and the resumption of the FIDF fee at a normal rate
since the beginning of this year, resulting in the net interest margin increasing to
2.88 percent. Net fees and service income was at a similar level to the first half of 2022. Operating expenses rose by 18.3 percent following an increase in economic activities, and partly from expenses for operational efficiency improvement. Meanwhile, the cost to income ratio declined to 47.1 percent. According to consistently setting aside expected credit losses, the Bank provided the similar level of expected credit losses as the previous quarter. As a result, the expected credit losses for the first half of 2023 amounted to Baht 17,354 million.
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 June 2023, the Bank’s total loans amounted to Baht 2,698,304 million, rising 0.6 percent from the end of last year, mainly due to an increase in loans to large corporate customers and loans made through the Bank’s international network. The ratio of non-performing loans to total loans was at a manageable level of 2.9 percent. The Bank continues to prudently set aside expected credit losses, leading to a robust allowance for expected credit losses to non-performing loans ratio of 287.1 percent.
As of June 30, 2023, the Bank’s deposits amounted to Baht 3,200,155 million, a similar level compared to the end of last year. The loan to deposit ratio stood at 84.3 percent. In terms of capital, the total capital adequacy ratio, Tier 1 capital adequacy ratio, and Common…
