Ten SET-listed commercial banks reported consolidated net profit in 2023 of 232 billion baht, a 15.6% year-on-year increase from around 201 billion baht in 2022, attributed to rising interest income as a result of policy rate hikes.
Regarding rising interest rates, the banking sector recorded total net interest income (NII) of around 727 billion baht in 2023, up by 17.8% year-on-year from 617 billion baht in 2022.
The country's five largest banks by total assets booked a higher net interest margin (NIM) attributed to the positive growth in NII.
The central bank has increased its policy rate eight times since August 2022, rising from 0.5% to 2.5% at present. The rate is at its highest level in a decade.
At the same time, the banking industry overall continued to set aside a higher expected credit loss (ECL) in alignment with a consistently prudent approach amid economic uncertainties.
Bangkok Bank, the country's largest lender by total assets, reported a net profit of 41.6 billion, up 42.1% year-on-year as a result of a 28% increase in NII due to higher yields on earning assets in line with the trend of rising interest rates, the bank said in a statement to the Stock Exchange of Thailand.
The bank's NIM increased to 3.02%, compared with 2.42% in 2022.
Kasikornbank (KBank), the second-largest player, along with its subsidiaries reported a net profit of 42.4 billion baht, up 18.5% year-on-year, due to a low base coupled with a gradual recovery of the economy.
NII amounted to 148 billion baht, up 11.6% in line with interest rate conditions, while NIM increased to 3.66% from 3.33% in the year earlier.
Krungthai Bank (KTB) reported a net profit of 36.6 billion baht, up 8.7% year-on-year, attributed to both improving NII and non-interest income.
The bank's NII amounted to 113.42 billion baht, up 25.5% year-on-year, while NIM increased to 3.22% from 2.6% in the year earlier as a result of portfolio optimisation and the rising interest rate trend.
SCB X, the holding company of Siam Commercial Bank, announced consolidated net profit of 43.5 billion baht, up 15.9% year-on-year, due to higher NII, despite higher ECL.
NIM increased to 3.73% compared with 3.29% in 2022.
Bank of Ayudhya (Krungsri) reported net profit of 32.9 billion baht, up 7.2% year-on-year, partly driven by NII and net fee and service income growth contributions from the acquired overseas consumer finance businesses. NIM increased to 4.91% from 3.45% in 2022.