“Bangkok Bank” announced the ’63 profit of 17,181 million baht, a 52% contraction in 4Q20 only with a profit of 2,398 million baht, a decrease of 70%, set aside for the full year credit loss of 31,196 million baht for the fourth quarter of more than 7,203 million baht. Up 27.1% from Q3 / 2020
Bangkok Bank reported a net profit for 2020 of 17,181 million baht, a 52% contraction from the same period last year. Only the 4Q20 net profit stood at 2,398 million baht, down 70%. In 2020, Bangkok Bank and its subsidiaries reported net interest income increased 8.4% from the year 2019 to 77,047 million baht as a result of consolidation. Permata Bank Net Interest The net interest margin was 2.25%, while net fee and service income and other operating income decreased.
This was mainly due to fees from credit granting and income from investments. From the introduction of the new Financial Instruments Group Standard (No. 9) to the financial statements for the accounting period from January 1, 2020 for operating expenses increased by 20.0%, mainly due to the consolidation of expenses. Pay of the Permata Bank And expenses related to the merger of the Indonesian branch with Permata Bank in December. This resulted in an expense ratio of operating income at 55.6%.
Meanwhile, the bank has set aside an anticipated credit loss of Baht 31,196 million for the fourth quarter of 2020 of more than 7,203 million baht, an increase of 27.1% from 3Q20, resulting in the loan loss allowance ratio. There is a credit impairment of 181.6%, which is the preparation based on continued caution. To accommodate the uncertainty of the economic conditions that shrink from the epidemic of COVID-19.
“Amidst the global economic challenges that have shrunk the global impact of COVID-19 Bangkok Bank remains committed to
Guidelines for conducting business with caution and prudence Along with maintaining a strong financial, liquidity and capital status. To maintain sustainable financial stability And prepare to support business operations in a new context (New Normal) “
By the end of December 2020, the bank had loans amounting to 2,363,338 million baht, a 14.7% increase from the end of 2019, excluding Permata Bank. Loans rose 2.7%, mainly from corporate lending. The credit impairment ratio to total loans was 3.9%, with the Bank still emphasizing the credit management and risk management processes. Along with maintaining the loss allowance Credit at the appropriate level
In terms of capital and liquidity, as of December 31, 2020, the Bank had deposits of 2,810,863 million baht, an increase of 18.6% from the end of 2019, excluding Permata Bank. Deposits increased 7.3%, mainly from savings deposits. The loan-to-deposit ratio is 84.1%, reflecting adequate liquidity to handle economic uncertainty.Additionally, on September 23, 2020, the bank issued subordinated debt securities that can be counted as Tier 1 capital. Of banks under Basel III guidelines of US $ 750 million To enhance the Bank’s capital structure to be more appropriate, as of the end of December 2020, the Bank has a total capital fund ratio. Tier 1 capital ratios and equity Tier 1 ratios to risk-weighted assets of banks and subsidiaries were 18.3%, 15.7%, 14.9%, respectively, well above the minimum capital adequacy ratios. As specified by the Bank of Thailand
The epidemic of COVID-19 Affecting the world economy and Thailand widely It was the worst crisis in decades. The business sector, especially the export and tourism sectors, was affected by the epidemic control measures. With the closure of cities and international travel restrictions Impact on employment and household expenditures In the third quarter, the government loosened the city shutdown measures and released various economic stimulus measures, causing the country’s economic activities to improve. However, at the end of the year The Thai economy has slowed down. This is because consumption demand accumulated from the gradual shutdown and a new wave of COVID-19 outbreak could affect the economy if widespread outbreak occurs. To reduce the impact of the epidemic of COVID-19 The government and the Bank of Thailand (BOT) have issued various measures to help sustain and support the continued economic recovery. We have consulted with financial institutions to take care of the affected debtor in a systematic and appropriate manner for each type of debtor.
However, the next economic recovery remains highly uncertain. Both from the risk of a new coronavirus outbreak Epidemic control measures Effectiveness and distribution of COVID-19 vaccine Including a period of re-exposure to foreign tourists Therefore, the bank continues to monitor the situation and take care of customers closely. Including the importance of overseeing the credit management process and managing risks with caution and prudence. Along with maintaining a strong financial, liquidity and capital status.
Source: ประชาชาติธุรกิจ by www.prachachat.net.
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