Worst Joke Ever 2024

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Banks report robust earnings

By SIRIPORN CHANJINDAMANEE

THE NATION

Commercial banks yesterday reported stronger-than-expected earnings, thanks to a continued increase in loan growth amid a low provisioning requirement.

Bank of Thailand senior director Salinee Wangtal attributed the impressive quarterly results to commercial banks' strengths. The net profits grew on higher loans to individual borrowers and lower provisioning due to good loan quality.

Kasikornbank, the country's third-largest commercial bank, showed consolidated second-quarter net profit of Bt4.76 billion, up 9.15 per cent from the previous quarter and 28.58 per cent from the same period last year. First-half earnings reached Bt9.13 billion, up 21.63 per cent from 2009, when net profit was only Bt7.5 billion.

In a statement, the bank said non-interest income continued to rise in line with its customer-centric business strategy. Non-interest income in the second quarter rose Bt1.4 billion from the previous quarter, or 10.55 per cent, thanks partly to bancassurance business. Net interest margin (NIM) in the quarter stood at 3.78 percentage points, against 3.66 percentage points in the previous quarter. Non-performing loans dropped to 3.19 per cent, from 3.51 per cent in the previous quarter.

Siam City Bank's first-half net profit also rose 24 per cent to Bt2.295 billion. Kiatnakin Bank's quarterly earnings rose 26 per cent year on year to Bt765.30 million. It attributed the increase to a 36.2-per-cent rise in net interest and dividend income, while loans expanded 5.9 per cent and spread widened to 5.5 percentage points. Tisco Financial Group recorded net profit of Bt1.47 billion in the first six months of this year, soaring 54.3 per cent compared with the same period last year.

The higher net profit came from rising revenue from interest and dividends, which increased by 29.6 per cent, and the high loan spread of 5.3 percentage points compared with 4.5 in the same period last year. Non-interest revenue was Bt1.80 billion, up by 44.9 per cent year on year.

Oranuch Apisaksirikul, group chief executive officer of Tisco, sees the possibility of raising its loan growth this year beyond 15 per cent, after the 13 per cent increase in the first half, thanks to the economic recovery, which pushes up car financing. That sector now accounts for 75 per cent of Tisco's total loan portfolio, reflecting an increase in the automotive loan sector in line with the improvement of the economy.

Tisco's total loan portfolio at the end of the second quarter was Bt128 billion, up by 8.6 per cent quarter on quarter and 13 per cent year to date. General loan business totalled Bt97.87 billion, up by Bt5.098 billion or 5.5 per cent quarter on quarter. New car-financing business volume approved in the second quarter to Bt14.11 billion, up by Bt3.65 billion or 34.9 per cent over the same period last year.

Oranuch said the company forecasts its automotive loans this year will meet its target under the estimated domestic car sales of 700,000 units. Sales for the first six months were about 350,000 units, and Tisco expects car financing this year to grow by 15-17 per cent. However, this business will get more furious with competition as well, she added.

She said that even though a hike in interest rates will affect Tisco's NIM by 0.35 percentage points from the current 4.6 points, Tisco was not concerned much because its NIM is strong.

Oranuch said Tisco planned to increase interest rates in line with the industry outlook, adding that the rate increases would wait on major hire-purchase operators. Tisco will not lead the rate hike, but according to some operators, the car-financing interest rate is expected to increase by 0.10-0.20 percentage points in line with the market.

She said the group was not concerned with non-performing loans, which were only 2 per cent of outstanding loans

-- The Nation 2010-07-20

[Mario2008]

I wonder how much the fee of 150 baht for foreign ATM withdrawals accounts for. That will be good for a nice profit.

[Guest]

Loan interest of up to 20%should make huge profitwhen the bank rate is only 1.5 %

[Capealava]

I wonder how much the fee of 150 baht for foreign ATM withdrawals accounts for. That will be good for a nice profit.

Well--at 1000 withdrawals per day--(is that high) ? It is $16,200,000 US dollars a year. Split between the banks it is not a lot. But I am sure it buys a few BMW's for year end bonuses.

Still the charge is one of the highest in the world and shows contempt for foreign tourist's and expat's.

My girlfriend today has to accompany her bosses assistant to Silom BMW to listen to sales pitch. They want to sell a block of BMW's to several company high ups (that is like 20 -30 cars or more). Discount's of course.

Nickel and diming has always been Banks attitude. It all adds up. Cheap fellows really. But they sure like the perks!!!!