Thai banks post improving third-quarter results

Siam Commercial Bank (SCB) posted a net profit of 4.641 billion baht in the third quarter of 2020, a decline of 69 per cent compared to the same period last year, as a result of higher provisioning.

For the first 9 months of this year, SCB recorded a net profit of 22.252 billion baht, down 36 per cent from the same period last year.

The NPL (Non-performing loan) ratio rose to 3.32 per cent at the end of September from 3.05 per cent at the end of June. The NPL coverage was maintained at a high level of 146 per cent and the bank’s capital adequacy ratio remains strong at 18.7 per cent.

Arthid Nanthawithaya, the Chief Executive Officer of SCB, said that although the economy has passed its lowest point, the direction of economic recovery still remains uncertain.

“Since the beginning of the COVID-19 epidemic, the bank has assisted more than 1.1 million customers under the debt relief program worth 840,000 million baht,” Arthid said.

There are still some groups which were affected by the economic downturn and could not repay their debts normally in the third quarter, SCB said it would continue supporting the borrowers through the period of uncertainty.

SCB traded at 64.25 baht per share on Wednesday 13.50 p.m., an increase of 3.00 baht or +4.90 per cent, with a transaction of 1484.4 million baht.

KBANK

Kasikornbank (KBANK) reported a third quarter profit of 6,679 million baht, an increase of 207 per cent from the previous quarter but a 49 percent decrease compared to the same period of last year.

The net interest income increased by 173 million baht, or 0.64 per cent due to a decrease in interest income from loans and interest expenses. KBANK’s Net Interest Margin (NIM) stood at 3.17 per cent.

While non-interest income decreased by 4,593 million baht, or 32.60 per cent, mainly due to market adjustment of investments in line with market conditions.

For the nine-month period, the net profit was 16,229 million baht, 45.77 per cent drop year-on-year, due to a 70.24 per cent increase in the provision of expected credit loss compared to the same period of 2019.

KBank is the country’s largest lender by assets and biggest firm in the SME loan business. Given the various factors of an uncertain economy, KBANK said that it will closely monitor the situation to provide assistance to affected borrowers together with measures from the Bank of Thailand.

KBANK traded at 74.75 baht per share on Wednesday 13.50 p.m. an increase of 1.50 baht or +2.05 per cent, with a transaction of 1484.4 million baht.

BBL

Bangkok Bank (BBL) reported a year-on-year drop of 57.43 per cent in net profit to 4.017 billion baht in the third-quarter of 2020. 

The drop is mainly due to an increase in operating expenses incurred by the acquisition of Permata and excess operating expenses related to the Indonesia branch integration. 

For the 9-month period, BBL’s net profit fell 46.85 per cent from 27.813 billion baht a year earlier to 14.782 billion baht.

Analysts from Krungsri Securities said that BBL had lower-than-expected profits from higher operating expenses especially the takeover in Indonesia but it set aside less provision than the previous quarter to help support profits.

BBL traded at 95.00 baht per share on Wednesday 13.50 p.m. an increase of 3.25 baht or +3.54 per cent, with a transaction of 567.78 million baht.

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