BBL’s 1Q21 Earnings Dip 10% at ฿6.9Bn after Booking Higher ECL and Expenses from Permata

Bangkok Bank Public Company Limited (BBL) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

BBL reported a net profit of 6,923 million baht in 1Q21, decreased 9.74% from a net profit of 7,670 million baht in 1Q20, mainly due to increases in expected credit losses to cushion the impact of the Covid-19 outbreak, and operating expenses due to the consolidation of Permata’s expenses. Non-interest income increased from higher gains on financial instruments measured at FVTPL, in line with the market situation.

 

Net interest income in the first quarter of 2021 amounted to 19,707 million baht, the same level as the first quarter last year. Meanwhile, non-interest income amounted to 11,166 million baht, increased by 4,592 million baht or 69.9% from the first quarter of last year due predominantly to an increase in gains on financial instruments measured at FVTPL, in line with the market situation, an increase in net fees and service income from the consolidation of Permata’s income, as well as increases in fee income from mutual funds and bancassurance services, and the securities business.

 

In the 1Q21,operating expenses amounted to 15,761 million baht, increased by 4,384 million baht or 38.5% due mainly to the consolidation of Permata’s operating expenses and intangible assets amortization.

 

In the first quarter of 2021, BBL set aside 6,326 million baht in expected credit losses (ECL) in accordance with its prudent approach to prepare for an economic slowdown resulting from the Covid-19 pandemic. Expected credit losses cover loans, interbank and money market items, debt securities, which are not measured at fair value through profit or loss, loan commitments, and financial guarantee contracts.

 

Non-performing loan (Gross NPL) at the end of March 2021 was 108,470 million baht. The gross NPL to total loans ratio was 3.7%. The allowance for expected credit losses was 203,125 million baht and the allowance for expected credit losses to NPL ratio was 187.3%.