Bangkok Bank (BBL) and SCB X reported slight increases in their net profits in the first quarter this year, fuelled by higher net interest income, but tempered by a rise in loan-loss reserves.
BBL, Thailand's largest lender by total assets, reported a consolidated net profit of 10.5 billion baht for the first quarter, marking a 3.89% year-on-year increase.
The net profit was primarily driven by higher net interest income, as yields rose on earning assets, in line with prevailing interest rate trends, according to the bank's financial statement submitted to the Stock Exchange of Thailand (SET).
The bank's net interest income for the first quarter tallied 33.4 billion baht, up 11.1% year-on-year, while total non-interest income amounted to 8.26 billion baht, down by 19.1%.
BBL's consolidated net profit for the first quarter gained 18.7% quarter-on-quarter.
The bank's total loans amounted to 2.73 trillion baht, a 2.4% gain from year-end 2023.
The growth was attributed to loans to corporate clients and those facilitated through BBL's international networks, according to the statement.
The bank's non-performing loan (NPL) to total loan ratio remained manageable at 3% as of March this year as BBL followed a prudent management approach, it reported.
The ratio of allowance for expected credit losses (ECLs) to NPLs remained robust at 292%.
The bank allocated 8.58 billion baht for ECLs in the first quarter this year, consistent with its prudent approach.
The broader Thai economy recorded only marginal growth, with subdued demand from trading partners exerting pressure on exports.
SCB X, the holding company of Siam Commercial Bank (SCB), registered a consolidated net profit of 11.3 billion baht for the first quarter of 2024, an increase of 2.6% year-on-year, according to the company's financial statement to the SET.
For the quarter, net interest income rose by 9.7% year-on-year to 31.8 billion baht, driven by an expansion in the net interest margin and an uptick in investment income.
The overall loan portfolio grew 2.1% year-on-year, fuelled by housing loans and corporate loans within SCB, as well as digital loans and auto title loans managed by portfolio companies.
According to the statement, asset quality is under control, with the NPL ratio at 3.5%, up from 3.3% year-on-year.
The NPL coverage ratio remained steady at 161%.
In response to challenges stemming from an uneven economic recovery and the impact of high household debt on susceptible retail customers, SCB X allocated provisions of 10.2 billion baht, an increase of 2.8% year-on-year.
In related news, TMBThanachart Bank (ttb) disclosed a consolidated net profit of 5.33 billion baht for the first quarter, up a healthy 24.19% year-on-year.
The uptick was attributed to a 6.6% year-on-year rise in net interest income, according to the financial statement.
As of March this year, the bank's NPLs totalled 39.8 billion baht, down 3% from the end of last year, with the NPL ratio shrinking from 2.62% to 2.56%.
Ttb allocated 5.11 billion baht for ECLs in the first quarter, maintaining a robust NPL coverage ratio of 155%.
The bank reported a slight contraction in loans of 1% for the first quarter compared with the preceding quarter.
This trajectory aligns with ttb's strategic focus on fostering quality loan growth and loan repayment practices, as well as prudent risk management protocols, according to the statement.