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During October Thai commercial banks are gradually announcing their results for the third quarter of 2020, and most of them are coming out as expected. The net profit of that bank will continue to slow.
Looking at the financial results of the top 4 banks, namely Bangkok Bank (BBL), Siam Commercial Bank (SCB), Kasikorn Bank (KBANK) and Krung Thai Bank (KTB), it was found to be as expected. Four large banks had a combined net profit of 18,394 million baht, a decrease of 22,148 million baht from the same period last year with a combined net profit of 40,542 million baht.
While the net profit for the first 9 months of the big 4 banks this year was 66,543 million baht, a decrease of 50,132 million baht from the same period last year at 116,675 million baht.
Bangkok Bank decreased 9.438 billion baht
Starting sincebangkok bank (Including subsidiaries) with a net profit of 4,017 million baht in the third quarter, a decrease from the same period of the previous year with a profit of 9,438 million baht and a 9-month net profit of 14,783 million baht, a decrease with respect to the same period of the previous year with benefit. Net 27,814 million baht
The main reason is due to the increase in 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.
At the end of September 2020, Bangkok Bank had loans worth 2,367,296 million baht, a slight increase of 0.6% from the end of June 2020 due to corporate and personal loans. The ratio of credit-impaired loans to total loans was 4.1%.
The provision for credit risks on credit-impaired loans was 178%, while deposits amounted to 2,821,883 million baht, 1.1% less than at the end of June 2020. The deposit at 83.9% reflects sufficient liquidity to handle economic uncertainty.
The total capital ratio was 17.6%, the Tier 1 capital ratio was 15.1%, and the Tier 1 capital ratio of the bank and its subsidiaries was 14.2%, which is higher. Minimum equity fund ratio as specified by Bank of Thailand (BOT)
SCB sets high reserve – profit drops 69%
WhileSiam Commercial Bank (Including subsidiaries) Net income (Consolidated financial statements before revision) in the third quarter of 4,641 million baht, a decrease of 69% compared to the same period of the previous year with a net income of 14,798 million baht as a result of a high normal reserve. Until this quarter AND a high base in the same period last year That you have a one-time profit from the sale of shares in SCB Life Assurance If you don’t include such special items Net earnings are down 56% from the same period last year.
Operating profit remained close to the same period last year and for the first nine months of 2020, the bank posted a net profit of 22,252 million baht, 36% less than in the same period last year with a net profit of 34,930 million. baht
At the end of September 2020, SCB’s overall loan grew 1% over the same period last year and grew 3% since the end of 2019.
The bank has carefully evaluated the quality of all loan portfolios. Classify qualitative accounts receivable among high risk clients. And it is very likely that you will not recover with the financial assistance program. As a result, the NPL ratio at the end of September 2020 stood at 3.32%, an increase from 3.05% at the end of June 2020 (at the end of the second quarter) in response to economic uncertainty and quality. Credit that could be impaired by the impact of the COVID-19 epidemic
Furthermore, in the third quarter, Siam Commercial Bank has reserved a reserve of 12,955 million baht, with the Bank’s provision for doubtful debt at high bad at 146%, while the Bank’s legal capital is still at a strong level at 18, 7%
Kasikornbank drops 3,272 million
sideKasikorn bench (Including subsidiaries) Net income for the third quarter of 2020 was 6,679 million baht, a decrease from the same period last year with a net income of 9,951 million baht and net income for the nine-month period of 2020 amounted to 16,229 million baht compared to the 9-month period. In 2019, the net profit decreased compared to the same period last year when the net profit was 29,924 million baht, amounting to 13,695 million baht or 45.77%.
Most of this is due to the bank’s use of precautionary principles. Continue considering the reserve for expected credit losses (expected credit loss) increased from the same period of the previous year by 17.692 million baht or 70.24%.
This is because the bank carefully takes into account several factors of the uncertainty of the economic recession and the situation of the COVID-19 outbreak. Along with government action, financial institutions provide assistance to affected clients. Therefore, the quality of debt still needs to be closely monitored.
However, only in the third quarter of Kasikorn Bank Apart from anticipated credit losses, a decrease of 9,377 million baht or 46.44%, mainly because the provision for anticipated credit losses from the previous quarter was already high.
However, as of September 30, 2020, Kasikorn Bank Total assets of 3,545,648 million baht, an increase from the end of 2019 by 251,759 million baht or 7.64%, mainly due to loan growth. The past due loan portfolio (% gross delinquency) stands at 3.95%, increasing since the end of 2019 by 3.65%.
While the expected coverage ratio for non-performing loans (coverage ratio) as of September 30, 2020 stood at 161.12% since the end of 2019 at 148.60%. The total capital over risk-weighted assets of the financial business group Kasikornbank according to Basel III criteria is 18.45%, with a Tier 1 capital ratio of 15.74%.
Krung Thai contracted 3.057 million
Result inKrung Thai Bank (Including subsidiaries) In the third quarter, the net income attributable to the Bank decreased to 3,057 million baht, or 51.9% less than in the same period of the previous year with a net income of 6,355 million baht since the Bank set aside the expected credit loss. That will happen in the amount of 12,414 million baht, an increase of 103.6% compared to the provision in the same quarter of 2019.
In the nine-month period, the bank’s net profit was 13,279 million baht, a decrease of 39.2% from the same period last year with a gain of 24,007 million baht due to the provision for anticipated credit losses. of 35,649 million baht. 87.7% increase in reservation expenses in the same period of 2019
Furthermore, the gross non-performing loan ratio stood at 4.21%, compared to 4.33% at the end of 2019, while the coverage ratio increased to 135.6% from 131.8% at the end of last year . The bank (the separate financial statements) has a Tier 1 capital ratio of 15.01% and a fund to total capital ratio to risk-weighted assets of 18.42%, which is robust compared to BOT criteria. .
However, the profit of each bank has decreased considerably. All caused by the increase in reserve To cope with the uncertainty in the future itself.
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