BBL’s 3Q Profit Drops 57% as Permata’s Operating Expenses Overwhelm Earnings

Bangkok Bank Public Company Limited (BBL) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

BBL recorded a net profit of 4,017 million baht in 3Q20, decreased 57.43% when compared to a net profit of 9,438 million baht in the same period last year. The decrease was mainly due to the operating expenses increased due to Permata’s operating expenses and the provision expenses related to Indonesia branches integration. Meanwhile, net interest income continued to grow,increasing by 1,908 million baht within a low interest rate environment, due to the consolidation of Permata’s net interest income.

In 3Q20, BBL total other expenses rose by 53.2%YoY from 12,679 million baht in 3Q19 to 19,427 million baht in 3Q20. The increase was mainly due to the consolidation of Permata’s operating expenses and the provision expenses related to Indonesia branches integration.

However, the profit for the third quarter showed an increase of 922 million baht from the second quarter of 2020. This was mainly due to a decrease of 7,570 million baht in expected credit losses as BBL had appropriately set aside additional expected credit losses to accommodate global economic uncertainty from the impact of Covid-19.

 

Net interest income rose by 1,742 million baht,due to the consolidation of Permata’s net interest income. Non-interest income fell by 4,606 million baht predominantly from a decrease in gains on financial instruments measured at Fair Value Through Profit or Loss (FVTPL) in line with the market situation. However,net fees and service income increased due to growth in fee income from investment banking, loan related, and bancassurance and mutual fund services.

Non-performing loan (Gross NPL) at the end of September 2020 was 107,743 million baht. The gross NPL to total loans ratio was 4.1 percent.