Bangkok Bank, known as BBL, has reported impressive financial results for the first quarter of 2025, showcasing a significant net profit of 12,618 million baht. This marks a remarkable increase of 19.9% compared to the same period last year, where the bank recorded a profit of 10,524 million baht. The growth in profit is largely attributed to a rise in operational income, which has been bolstered by higher interest income and a solid performance in non-interest income streams.
According to the bank's announcement to the Stock Exchange of Thailand, the pre-provision profit stood at 31,909 million baht, reflecting a pre-provision profit margin of 2.89%. This increase is consistent with the prevailing interest rate trends in the market, although it represents a decline of 4.5% from the previous year and a 6.1% drop from the last quarter.
The bank's non-interest income surged by 66.4% year-on-year, reaching 13,745 million baht. This growth is primarily driven by increased fees and services from loan facilitation, insurance services, and mutual fund management, which continue to thrive despite the challenging economic landscape.
However, operational expenses have also seen an uptick. The bank remains committed to enhancing and streamlining its operational efficiency while managing costs effectively. As a result, the cost-to-income ratio is at 45.5%, indicating a balanced approach to growth and expenditure.
In terms of credit provisions, Bangkok Bank has set aside 9,067 million baht for expected credit losses, which aligns closely with the figures from the same quarter of the previous year. The bank's approach to credit risk management has been cautious, ensuring that it maintains financial stability and liquidity while supporting its clients.
As of the end of March 2025, Bangkok Bank's total loans amounted to 2,720,983 million baht, reflecting a modest increase of 1.0% from the previous year. The bank's credit quality remains stable, with a non-performing loan ratio of 3.0%, which is manageable within the current economic context. Furthermore, the bank's loan loss coverage ratio stands strong at 300.3%, demonstrating its prudent reserve practices.
Deposits at Bangkok Bank reached 3,225,131 million baht, marking a 1.8% increase from the previous year. The loan-to-deposit ratio is reported at 84.4%, indicating a healthy balance between lending and deposits.
Looking ahead, Bangkok Bank has expressed a cautious outlook on the Thai economy for the first quarter of 2025. The bank noted signs of a slowdown, primarily driven by a significant decline in private sector investment amidst rising uncertainties regarding trade policies from major economies. The manufacturing sector continues to face pressure, although there are signs of recovery in the automotive industry.
Despite the challenges, the service sector is still expanding, albeit hindered by a drop in Chinese tourist numbers and per capita spending. However, tourists from other nationalities are increasing, which helps support the overall tourism sector.
Exports have begun to show signs of recovery, although they remain under pressure from global economic uncertainties. The bank pointed out that domestic demand is still weak, contributing to ongoing price pressures.
Bangkok Bank is aware of the significant challenges ahead, including uncertainties stemming from U.S. trade policies, fluctuations in energy prices, and high household debt levels that could impact consumer purchasing power and private sector confidence.
In response to these challenges, Bangkok Bank emphasizes its commitment to being a reliable partner for its clients. The bank aims to provide tailored advice and support for businesses navigating these uncertain times, ensuring they can capitalize on opportunities for growth, including international expansion.
Furthermore, the bank is dedicated to responsible lending practices and maintaining a focus on sustainability and community-oriented financial services. This includes adapting to the rapid changes in technology and innovation that are reshaping the financial landscape.
Bangkok Bank continues to position itself as a proactive financial institution, ready to support its customers through challenges and opportunities alike. With a focus on stability, efficiency, and customer-centric services, the bank is poised for continued growth in the evolving economic environment.
