A Shrink of Bank’s Profit Continues in 2Q19

The bank sector comprises of 11 banks recorded a total net profit in 2Q19 at THB 53,382.40 million, declined 0.34% from the same period of last year.

The second-quarter financial statements of listed companies will be released in the upcoming week in succession. As it has always been, the bank sector completed their reports before any other companies.

The bank sector comprises of 11 banks recorded a total net profit in the second quarter of 2019 at THB 53,382.40 million, declined 0.34% from the same period of last year at THB 53,403.61 million. Meanwhile, the six months net profit from 11 banks recorded at THB 109,333.43 million, declined 0.03% from the same period of last year at THB 106,154.18 million.

The decline of profit in the bank sector was not a surprise and expected by analysts. However, only BAY, KTB and BBL that made higher profit YoY in both 2Q and 6M.

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BAY recorded a net profit of THB 7,010 million in the second quarter of 2019, increased 11.75% YoY. Meanwhile, the net profit for the first half of 2019 was at THB 19,746 million, increased 58.13% YoY.

The increase in profit was due to higher gains from interest income and fee and service income that booked THB 275 million and THB 225 million, respectively, higher in the quarter. The Bank also recorded higher operating income at THB 28,040 million, an increase of about THB 1,000 million or 4%.

In the second quarter of 2019, KTB’s net profit was THB 8,170 million, a growth of 6.0% due to continual loan growth while KTB’s net profit for the first six months of 2019 was THB 15,471 million, or a growth of 3.49% YoY mainly due to higher interest income and lower provision.

BBL reported 2Q19 net profit of THB 9,347 million, an increase of 1.7% YoY. In the first half of 2019, net profit was recorded at THB 18,375 million, an increase of THB 176 million or 1% YoY mainly from higher interest and non-interest income and lower provision.

SCB, KKP, TMB, LHFG, TCAP and KBANK faced a decline in both 2Q19 and 6M19 YoY. Meanwhile, TISCO gained 14.20% of profit in 2Q, but the profit decreased by 0.84% for 6M period. On the other hand, CIMBT‘s 2Q profit plunged by 45.13%, but the profit for 6M still increased by 19.39%.

Even though the majority of banks reported a lower net profit in 2Q19 and 6M19, some of the banks had better performance in managing NPLs when compared to the previous quarter. BAY reported NPL at 1.96%, decreased from 1.99%. TMB reported NPL at 2.74%, decreased from 2.81%. LHFG reported NPL at 1.85%, decreased from 2.00%, and KBANK reported NPL at 3.40%, decreased from 3.44%.