Net profit up 12.7% Loans up 9.2% Non-interest income up 16.8%

Bangkok Bank has reported a consolidated net profit for 2013 of Baht 35.9 billion, an increase of Baht 4.1 billion or 12.7 percent from 2012. Net interest income rose by Baht 927 million. Non-interest income rose by Baht 5.1 billion and operating expenses increased by Baht 801 million.

At the end of December 2013, total lending was Baht 1,752.7 billion, an increase of Baht 148.3 billion or 9.2 percent from the end of 2012. This growth was experienced across every customer segment - Corporate, SME, Consumer and International. We achieved this by taking very good care of our customers and staying close to them, allowing us to understand their needs and support them appropriately.

The Bank maintained its good asset quality. At the end of 2013, non-performing loans (NPLs) were Baht 43.2 billion, while the ratio of non-performing loans to total loans was lower to 2.2 percent at the end of December 2013. The ratio of loan loss reserves to NPLs increased to 214.2 percent.

At the end of December 2013, deposits were Baht 1,935.3 billion, an increase of Baht 100.6 billion or 5.5 percent from the end of December 2012. Since loan growth was higher than deposit growth, the loan-to-deposit ratio increased from 87.4 percent at the end of 2012 to 90.6 percent at the end of 2013.

The net interest margin decreased from 2.55 percent in 2012 to 2.36 percent in 2013, due to the rising cost of deposits while loan yield declined.

Non-interest income for 2013 was Baht 35.6 billion, an increase of Baht 5.1 billion or 16.8 percent from 2012, due mainly to an increase in net fees and service income, net gains on investments and gains on trading and foreign exchange transactions.

Operating expenses were Baht 37.9 billion, an increase of Baht 801 million or 2.2 percent from the previous year, due mainly to higher employee expenses and higher premises and equipment expenses. The cost-to-income ratio was 41.5 percent.

Operating profit before income tax expenses was Baht 44.9 billion, an increase of Baht 3.9 billion or 9.5 percent from last year. The Bank had provisioning expenses of Baht 8.6 billion, an increase of Baht 1.3 billion from 2012.

The Bank maintained its high level of capital. If net profit for the second half of 2013 were included, the total capital adequacy ratio, the common equity Tier 1 ratio and the Tier 1 capital ratio would be approximately 17.7 percent, 15.2 percent and 15.2 percent, respectively.

Shareholders' equity at the end of December 2013 was Baht 295.9 billion, equivalent to 11.4 percent of total assets. Book value per share was Baht 155.03, an increase of Baht 12.53 from 2012.

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