Bangkok Bank (BBL) reported a 20% year-on-year increase in net profit for the first quarter of 2025, driven by a significant rise in fee-based income, despite a decrease in loan volume.
As the country’s largest lender by total assets, BBL and its subsidiaries achieved a consolidated net profit of 12.6 billion baht for the quarter, a 19.9% increase compared to the same period last year. This growth was primarily attributed to a rise in total operating income, as stated by the bank in its report to the Stock Exchange of Thailand.
The bank’s total non-interest income amounted to 13.7 billion baht, reflecting a substantial year-on-year increase of 66.4%. On the other hand, net interest income declined by 4.5% year-on-year, reaching 31.9 billion baht. The net interest margin (NIM) also decreased to 2.89%, down from 3.06% in the same quarter last year, in line with prevailing market interest rate trends.
As of March, BBL reported total outstanding loans of 2.72 trillion baht, representing a 0.6% decline year-on-year. However, there was a 1% increase in loans quarter-on-quarter, primarily driven by lending to large corporate clients. For the quarter, the bank set aside 9.06 billion baht for expected credit losses, maintaining a conservative approach amid challenging economic conditions and high household debt levels.
BBL highlighted that domestic consumption and private sector confidence may continue to be under pressure due to sluggish economic growth, elevated debt levels, and ongoing external uncertainties, especially regarding US trade policy and global economic conditions. The bank acknowledged that Thailand’s economic outlook for the year is fraught with risks such as geopolitical tensions affecting energy and commodity prices, which could restrain spending and business sentiment.
During a recent shareholder meeting, BBL president Chartsiri Sophonpanich stated that the bank is committed to supporting customers through ongoing economic challenges while actively seeking new growth opportunities. Strategic priorities include international expansion, environmental, social, and governance initiatives, as well as the enhancement of digital banking services.
BBL aims for total loan growth of 3-4% this year, with corporate and international lending anticipated to grow by 3-5%. Loans to small and medium-sized enterprises (SMEs) and retail loans are expected to rise by 1-2% each, while the bank plans to keep its non-performing loan ratio below 3% for the year. Additionally, BBL intends to maintain its NIM within a range of 2.8-2.9%, anticipating that the Bank of Thailand may reduce its policy rate twice this year.
