2 weeks Ago
Bangkok Bank (BBL) reported 20% year-on-year growth in net profit for the first quarter of 2025, supported by a sharp increase in fee-based income, despite a contraction in loan volume. BBL, the country's largest lender by total assets, and its subsidiaries posted a consolidated net profit of 12.6 billion baht for the quarter, up 19.
9% year-on-year. The growth was largely attributed to a rise in total operating income, according to the bank's statement to the Stock Exchange of Thailand. The bank also recorded total non-interest income of 13.
7 billion baht, a 66.4% year-on-year increase. Conversely, net interest income fell 4.
5% year-on-year to 31.9 billion baht. The bank's net interest margin (NIM) also declined to 2.
89%, compared with 3.06% in the same quarter last year, aligning with prevailing market interest rate trends. As of March, BBL reported total outstanding loans of 2.
72 trillion baht, down 0.6% year-on-year. However, loans rose 1% quarter-on-quarter, driven primarily by lending to large corporate clients.
For the quarter, the bank allocated 9.06 billion baht for expected credit losses, maintaining its conservative stance amid subdued economic prospects and persistently high household debt levels. BBL noted that domestic consumption and private sector confidence could remain under pressure due to weak economic growth, elevated debt burdens and ongoing external uncertainties -- particularly from US trade policy and global economic conditions.
The bank said Thailand's economic outlook for this year remains challenged by several risks, including geopolitical tensions affecting energy and commodity prices, as well as continued high levels of household debt. These factors may constrain spending and business sentiment throughout the year. At a recent shareholder meeting, BBL president Chartsiri Sophonpanich said the bank is prepared to support customers through ongoing economic uncertainty while actively pursuing new growth opportunities.
Strategic priorities include international expansion; environmental, social and governance initiatives; and enhancement of digital banking services, he said. The bank targets total loan growth of 3-4% this year, led by corporate and international lending, each expected to grow by 3-5%. Small and medium-sized enterprises and retail loans are projected to grow by 1-2% each, while BBL aims to keep its non-performing loan ratio below 3% throughout the year.
In addition, the bank wants to maintain its NIM within a range of 2.8-2.9%, as it anticipates the Bank of Thailand will cut its policy rate twice this year.
.
