Two listed banks, including Bangkok Bank (BBL), have reported positive net profits for the first nine months of 2024, while another two banks saw declines in their profits.
BBL, the largest lender in the country by total assets, along with its subsidiaries, achieved a net profit of 34.8 billion baht during the first three quarters, reflecting a year-on-year increase of 6.2%. The bank credits this growth to a 4.4% rise in net interest income, as indicated in the statement filed with the Stock Exchange of Thailand (SET).
As of September 2024, BBL’s net interest margin (NIM) stood at 3.05%, bolstered by effective liquidity management and enhanced yields on earning assets.
Non-interest income was positively impacted by higher investment returns in line with market conditions, as well as continued robust growth in fee income from bancassurance and mutual fund services.
The bank’s conservative management strategy and substantial loan-loss provisions from previous periods led to a decrease in expected credit losses (ECLs) to 8.19 billion baht in the third quarter. For the first nine months of the year, total ECLs amounted to 27.2 billion baht, consistent with levels from the same period in 2023.
BBL’s filing noted, “The bank’s ECLs reflect its consistent risk management strategy, taking into account various economic challenges, including China’s stimulus measures, geopolitical tensions, and the upcoming US presidential election.”
At the end of September 2024, BBL’s total loans were 2.63 trillion baht, a decline of 1.2% from the 2.67 trillion baht reported at the end of 2023. However, loans to large corporate clients continued to show growth.
TMBThanachart Bank (ttb) and its subsidiaries reported a net profit of 15.9 billion baht for the first nine months of 2024, representing a 17.1% year-on-year increase. This growth was attributed to an improved NIM, effective management of funding and operating costs, as well as stable asset quality. However, loans experienced a contraction due to the challenging economic environment, according to ttb’s filing with the SET.
As of September, ttb’s total loan portfolio was 1.20 trillion baht, down 3.3% from the previous quarter and 5.6% year-to-date. Given the economic uncertainty, the bank reaffirmed its commitment to a cautious strategy, focusing on selectively expanding a high-quality portfolio while optimizing liquidity until conditions warrant more substantial returns.
In contrast, Tisco Financial Group, the parent company of Tisco Bank, reported a decline in net profit to 5.19 billion baht for the first nine months of 2024, down 5.82% year-on-year. This decrease was linked to an increase in ECLs, which reached 0.6% of average loans, as part of the group’s strategy to normalize ECLs and prepare for potential risks due to fragile economic conditions.
As of September 2024, Tisco Bank’s total loans amounted to 300 billion baht, a decrease of 1.5% from the previous quarter and 2.1% year-to-date. The bank’s core auto loan portfolio fell to 101 billion baht, a reduction of 1.8% quarter-on-quarter and 5.3% year-to-date, as the bank maintained a cautious underwriting policy amid weak domestic car sales.
Finally, LH Financial Group, the parent company of Land and Houses Bank (LH Bank), reported a net profit of 1.47 billion baht for the first nine months of 2024, a decline of 15.7% year-on-year. This drop was attributed to lower gains from investments and reduced dividend income.
