Top three banks see mixed operating results in second quarter

SCB nets 5.2-billion-baht profit in Q2

Thailand’s top three commercial banks recently reported their operating results for the second quarter of this year as the biggest lender Bangkok Bank saw its net profit slightly drop by 3.4 percent while second lender Krung Thai Bank’s quarterly profit rose 15 percent and third lender Siam Commercial Bank’s profit fell 10 percent.

The three biggest lenders posted the quarterly net profits of 4.86, 2.33 and 5.2 billion baht respectively.

Bangkok Bank Plc (BBL), with 1.74 trillion baht of assets, said its April-June net profit dropped 3.4 percent from 5.03 billion baht of the same period last year, mainly due to the drop in loans and lower interest rates.

In its report to the Stock Exchange of Thailand (SET), the bank said its total deposits at the end of June were some 1.35 trillion baht, an increase of 44.2 billion baht or 3.4 percent from the end of last year while the total loans at the end of June were almost 1.1 trillion baht, a 6.2 percent drop from the end of last year.

During the second quarter, BBL said, its non-performing loans (NPLs) fell by 1.7 billion baht, resulting in a decline in the ratio of NPLs to total loans to 4.6 percent, compared with 4.8 percent at the end of the first quarter.

The state-run Krung Thai Bank Plc (KTB), the country’s second largest lender with over 1.39 trillion baht of total assets, said the 15-percent rise in quarterly net profit was from stronger loan demand and non-interest income.

During the second quarter, the bank’s non-interest income rose 53.9 percent, when compared with that of the same quarter last year, to 2.8 billion baht while its fees and service income rose 27.33 percent from the same quarter last year to 2.28 billion baht.

At the end of June, KTB saw its total deposits rise to almost 1.14 trillion baht, an increase of some 75.18 billion or 7.07 percent from the end of  December 2008 while its total loans rise to 1.09 trillion baht, an increase of 46.421 billion baht or 4.44 percent from December 2008.

Siam Commercial Bank Plc (SCB), the country’s third largest lender with 1.31 trillion baht of total assets, reported a 10 percent drop in quarterly net profit, mainly due to slow loan growth and declining net interest margins.

SCB’s net profit of 5.2 billion baht in the second quarter dropped from 5.8 billion baht in the same quarter last year.