BBL Shows 50% Profit Growth in 3Q23 as Loan Portfolio Expands

Bangkok Bank Public Company Limited (SET: BBL) has announced its 3Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q23 3Q22
Net Profit (Loss)
Million Baht
11,349.91 7,656.99
Earning Per Share
5.9500 4.0100
% Change 48.23
9 Months 2023 2022
Net Profit (Loss)
Million Baht
32,772.71 21,736.13
Earning Per Share (Baht) 17.1700 11.3900
% Change 50.78

BBL reported a net profit of Baht 11,349 million in 3Q23, increased 48.23% from a net profit of Baht 7,656 million in 3Q22. The increase in net profit was mainly from higher interest income along with the direction of interest rates offset by a gradual increase in cost of deposits and the resumption of the Financial Institutions Development Fund (FIDF) fee to the normal rate from the beginning of 2023. The Bank set aside lower expected credit losses in accordance with the Bank’s prudent approach. Non-interest income declined from lower gains on financial instruments measured at FVTPL in accordance with the market environment. Operating expenses increased in line with economic activities as well as partly from expenses for operational efficiency improvement.

Net interest income in the third quarter of 2023 amounted to Baht 34,130 million, increased by 28.8%. The increase was due to the rise in yields on earning assets following the interest rates trend.

Non-interest income for the third quarter of 2023 amounted to Baht 8,443 million, decreased 17.3% from the same period last year. This was mainly from lower gains on financial instruments measured at FVTPL following the market environment.

Meanwhile, operating expenses increased by 12.9% in the third quarter to Baht 19,208 million.

The Bank had expected credit losses of Baht 8,969 million for the third quarter of 2023, which was relatively the same level as in the previous quarter, but lower than the same period of last year that the bank had nearly Baht 9,900 million. Meanwhile, BBL recorded Baht 26,323 million for the first nine months of 2023 in expected credit loss. This is consistent with the Bank’s prudent approach by taking into consideration economic uncertainties.

Non- performing loan (Gross NPL) at the end of September 2023 was Baht 94,884 million, while the gross NPL to total loans ratio stood at 3.0 percent. The allowance for expected credit losses was Baht 268,786 million. The allowance for expected credit losses to NPL ratio was 283.3 percent.