Bangkok Bank Reports 62% Increase in 2Q23 Earnings as Net Interest Income Surges

Bangkok Bank Public Company Limited (SET: BBL) has announced its 2Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q23 2Q22
Net Profit (Loss)
Million Baht
11,293.52 6,961.07
Earning Per Share
5.9200 3.6500
% Change 62.24
6 Months 2023 2022
Net Profit (Loss)
Million Baht
21,422.81 14,079.14
Earning Per Share (Baht) 11.22 7.38
% Change 52.16

BBL reported a net profit in the second quarter of 2023 of Baht 11,294 million, increased by 62.2%. Meanwhile, in the first half of 2023, net profit of BBL was Baht 21,423 million, an increase of 52.2% from the same period last year, due mainly to an increase in net interest income.

Compared with the second quarter of 2022, net interest income increased by 33.8 percent. In the first half of 2023, net interest income amounted to Baht 61,565 million, an increase of 36.0 percent from the rise in yield on earning assets following the direction of interest rates offset by an increase in cost of deposits from rising interest rate and the adjustment of the FIDF fee to the normal rate of 0.46 percent per annum from the beginning of 2023 onwards.

Operating expenses increased from the gradual recovery of economic activities after the Covid-19 situation eased, as well as partly from expenses for operational efficiency improvement. The bank set aside Baht 17,354 million in expected credit losses in the first half of 2023.

At the end of June 2023, the Bank’s total loans amounted to Baht 2,698,304 million, rising 0.6 percent from the end of last year, mainly due to an increase in loans to large corporate customers and loans made through the Bank’s international network. The ratio of non-performing loans to total loans was at a manageable level of 2.9 percent. The Bank continues to prudently set aside expected credit losses, leading to a robust allowance for expected credit losses to non-performing loans ratio of 287.1 percent.