BBL’s 2Q21 Earnings Soar 105% as Investment in Permata Yields Strong Return
BBL booked 6,356 million baht of net profit in 2Q21, mainly from the operating income of Permata Bank.
Bangkok Bank Public Company Limited (BBL) has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
BBL reported a net profit of 6,356 million baht in 2Q21, increased 105.39% compared to a net profit of 3,094 million baht in 2Q20 from an increase in operating income due mainly to the consolidation of Permata’s income, together with increases in fee income from loan-related services and the securities business.
In 2Q21, expected credit losses decreased during the period as BBL continued to assess the potential impact of the Covid-19 pandemic. Meanwhile operating expenses increased from the consolidation of Permata’s expenses.
The net interest income increased by 4.8 percent due mainly to the consolidation of Permata in May 2020, while the net interest margin stood at 2.12 percent,decreased from the same period of 2020 following multiple interest rate cuts during the first half of last year. Net fees and service income rose by 18.8 percent, due to fee income from bancassurance and mutual funds services and fee from securities business, as well as the consolidation of Permata’s fee income. The cost to income ratio was 49.5 percent.
Meanwhile, BBL set aside expected credit losses under its prudent approach as the bank continued to assess the potential impact from the prolonged Covid-19 pandemic on the Thai economy and to prepare for and accommodate uncertainty.
At the end of June 2021, BBL’s total loans amounted to 2,420,305 million baht, an increase of 2.2 percent from the end of last year, owing to increases in loans to business customers and loans made through the international network.
Nonetheless the non-performing loan ratio remained at 3.7 percent. BBL stated that it continued to set aside expected credit losses in response to the potential impacts from a prolonged Covid-19 outbreak on the Thai economy, driven a ratio of loan loss reserves to non-performing loans remaining strong at 190.3 percent.