Bangkok Bank (BBL), the largest lender in the country, reported a positive net profit of 34.8 billion baht for the first three quarters of 2024, showing a 6.2% increase compared to the previous year. This growth was mainly due to a rise in net interest income by 4.4%. The bank’s effective liquidity management and improved yields on earning assets also contributed to its net interest margin (NIM) reaching 3.05% as of September 2024.
Aside from net interest income, BBL also saw a boost in non-interest income from higher investment income and fees from bancassurance and mutual fund services. The bank’s proactive risk management strategy led to a decrease in expected credit losses (ECLs) to 8.19 billion baht in the third quarter. By the end of September 2024, BBL’s total loans amounted to 2.63 trillion baht, with loans to large corporate clients continuing to grow.
Another bank that saw positive results was TMBThanachart Bank (ttb), which reported a net profit of 15.9 billion baht for the same period, marking a 17.1% increase year-on-year. Despite a challenging economic environment leading to a decrease in loans, ttb’s improved net interest margin, managed funding, and operating costs played a significant role in its financial performance.
On the other hand, Tisco Financial Group, the holding company of Tisco Bank, experienced a decline in net profit by 5.82% year-on-year, reaching 5.19 billion baht for the first nine months of 2024. This decrease was mainly due to an increase in expected credit losses (ECLs) as part of the group’s strategy to prepare for potential risks stemming from economic conditions. Tisco Bank’s total loans also saw a decline, with its core auto loan portfolio decreasing amid weak domestic car sales.
Lastly, LH Financial Group, the holding company of Land and Houses Bank (LH Bank), recorded a net profit of 1.47 billion baht for the same period, showing a 15.7% decline compared to the previous year. This drop was attributed to lower gains on investments and reduced dividend income.
Overall, Bangkok Bank’s strong financial performance, along with positive results from TMBThanachart Bank, highlights the resilience and effectiveness of these banks’ strategies in navigating through economic challenges. Despite varying outcomes across different financial institutions, the commitment to prudent risk management and strategic growth remains a common theme in the banking sector.