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October 20, 2020
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Bank of Bangkok Announces Nine-Month Budget, 46.9% Profit Fluctuations After Stocking Up On Uncertainty, Rising Nearly 8 Billion In The Month
Bangkok Bank reports net earnings for 9 months of 2020 amounting to 14,783 million baht.
In the third quarter of 2020, the Thai economy improved slightly from the previous quarter. After the government has gradually relaxed measures to prevent the spread of the coronavirus disease. New species 2019 (COVID-19)
Thai exports and imports have passed the lowest point. After companies around the world began to reopen
For the household Industrial production Private consumption Private investment As well as domestic tourism has gradually improved After people began to return to normal life
The government has accelerated spending and introduced additional measures to stimulate the economy this year. This resulted in an expansion of public spending and investment and was a key factor in the economic recovery. It remains the main risk factor for Thailand
In the next phase
In addition, the government and the Bank of Thailand (BOT) have continuously launched various measures. To alleviate negative economic impacts on people and entrepreneurs in many sectors. Who were affected by the COVID-19 epidemic Although some measures to provide assistance to debtors have been finalized.
The BOT has continued talks with financial institutions. To attend to the affected debtor in a systematic and adequate way for each type of debtor. The Bank continues to pay close attention to the credit management and risk management processes.
Including closely monitoring the situation of each group of clients We will continue to provide assistance until COVID-19 is resolved and become a “partner” in overcoming this crisis together.
Net earnings of Bangkok Bank and its subsidiaries for nine months of 2020 amounted to 14.783 million baht. Bangkok Bank and its subsidiaries reported net earnings for nine months of 2020 of 14.783 million baht.
What the Bank of Permata’s actions include From the date the bank assumed control on May 20, 2020
Net profit decreased compared to the same period last year. This is mainly due to the higher expected credit losses. Serve as a reserve for the uncertainty of the economic recession due to the impact of the COVID-19 situation in accordance with prudent and careful business practice.
The bank’s net interest income increased 7.2 percent from the same period in 2019, driven by the consolidation of Permata Bank’s net interest income. The net interest margin was 2.28 percent. Non-interest income decreased primarily due to a decrease in net fee and service income and investment income.
Operating expenses increased 17.6% as a result of Permata Bank’s total expenses. And estimate the costs associated with mergers and acquisitions in Indonesia. While the ratio of expenses to operating income was 52.0 percent.
Amid shrinking economic challenges around the world, Bangkok Bank still adheres to its business conduct with caution and prudence. In addition to maintaining a solid financial, liquidity and capital status. Maintain sustainable financial stability AND be prepared to support business operations in a new context (New Normal)
At the end of September 2020, the bank had loans of 2,367,296 million baht, a slight increase of 0.6 percent from the end of June 2020 due to corporate and personal loans.
For loan ratios
The Bank maintained a stable ratio of credit losses over loans at 178.0%.
The Bank still attaches great importance to credit management and risk management processes. Along with the maintenance of emission rights
Credit losses at a reasonable level
In terms of capital and liquidity, as of September 30, 2020, the Bank had deposits of 2,821,883 million baht, 1.1 percent less than at the end of June 2020.
The loan-to-deposit ratio is 83.9 percent, reflecting sufficient liquidity to handle economic uncertainty.
In addition, on September 23, 2020, the Bank issued US $ 750 million of subordinated debt, eligible for Tier 1 capital, under Basel III guidelines. Strengthen the Bank’s capital structure to make it more suitable
At the end of September 2020, the Bank has a total equity fund index. Tier 1 capital ratios and Tier 1 capital ratios for the Bank and its subsidiaries were 17.6 percent, 15.1 percent, and 14.2 percent, respectively.
Which is at a higher level than the minimum equity fund ratio set by the Bank of Thailand
Participation and additional investment of Bangkok Bank
On October 7, 2020, the Bank made a Mandatory Offer to Purchase (MTO) to purchase Permata Bank shares in accordance with Indonesian regulations. Finished
The Bank owns 98.71% of the issued and paid-up shares of Permata Bank. And on September 17, 2020, Bangkok Bank acquired additional ordinary shares in BSL Leasing Company Limited.
With between 35.9% and 90.0% of the shares, the Company becomes a subsidiary.
New Financial Instruments Standards The Bank and its subsidiaries have adopted the new Financial Instruments Group Standard (No. 9) in the financial statements for the accounting period from January 1, 2020 onwards.
Without adjusting the financial statements for historical comparison The main changes include the classification and measurement of financial assets and liabilities.
The calculation of the impairment of financial assets through the use of expected credit losses (expected credit loss). And recognition of interest income on loans using the effective interest rate method (TIE)
