In the third quarter of 2021, Thai economy continued to be affected by the Covid-19 Delta variant and tight lockdown restrictions imposed by the government to control the spread of the virus. Private consumption and spending continued to decline due to weak household purchasing power despite the government's supportive measures. Furthermore, the Thai economy was still being affected by international travel restrictions and international tourist arrivals remained low. The pace of exports slowed as demand from trading partners softened after the outbreak situation abroad worsened. Nonetheless, in September 2021, after the number of new infections decreased and the proportion of vaccinated people increased, the government partially eased some lockdown measures leading to a slight improvement in the economy. However, Thailand's economic recovery is still vulnerable to the ongoing Covid-19 pandemic. The continuation of government support is still needed to underpin the economic recovery and help all sectors to recover from the crisis.

Bangkok Bank has continuously supported government measures and continue to help customers affected by Covid-19 pandemic with appropriate assistance in line with individual and business customers' situations. At the same time, the Bank has placed importance on prudent risk management, together with maintaining its financial stability, liquidity and strong capital positions.

Bangkok Bank and its subsidiaries' performance for the first nine months of 2021

In the first nine months of 2021, Bangkok Bank and its subsidiaries reported a net profit of Baht 20,189 million, an increase of 36.6 percent from the same period last year. Net interest income rose by 4.6 percent due to the consolidation of Permata's net interest income since May 2020 and lower interest expenses resulting from cost management. The net interest margin stood at 2.10 percent. Non-interest income rose by 27.6 percent mainly due to an increase in net fees and service income from higher fee income from securities business and loan-related services, together with an increase in gain on financial instruments measured at Fair Value Through Profit or Loss (FVTPL), in line with the market situation. Operating expenses rose by 4.6 percent while a cost to income ratio declined to 48.4 percent. The Bank set aside expected credit losses under its prudent approach as it continues to assess the impact of the Covid-19 pandemic on the Thai economy and to prepare for and accommodate uncertainty.

Bangkok Bank continues to maintain its healthy financial position, high liquidity and capital positions, under a prudent management approach, in response to a delay in the economic recovery and uncertainty

At the end of September 2021, the Bank's total loans amounted to Baht 2,523,772 million, an increase of 6.6 percent from the end of last year, owing to loans to large corporate customers and loans made through the international network. Meanwhile, the non-performing loan ratio remained at 3.7 percent. The Bank continues to set aside expected credit losses to cover the delayed and uncertain economic recovery, with the ratio of loan loss reserves to non-performing loans remaining strong at 198.9 percent.

As of September 30, 2021, the Bank's deposits amounted to Baht 3,124,277 million, an increase of 11.2 percent from the end of December 2020. The rise reflected customers' desire to maintain highly liquid assets during a time of uncertainty. Accordingly, the loan to deposit ratio stood at 80.8 percent. In September 2021, the Bank issued 15-year Subordinated Notes qualified as Basel III-complaint Tier 2 capital amounting to USD 1,000 million, which further strengthen the Bank's well mixed of capital structure. At the end of September 2021, the total capital adequacy ratio, Tier 1 capital adequacy ratio, and Common Equity Tier 1 capital adequacy ratio of the Bank and its subsidiaries stood at 19.7 percent, 16.1 percent and 15.3 percent respectively, comfortably above the Bank of Thailand's minimum capital requirements.

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Bangkok Bank pcl published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 12:03:04 UTC.