Bangkok Bank Profit Drops 16% in First Half of 2025
Bangkok Bank's first-half profit fell 16% to 20.5 billion baht as lower interest rates squeezed margins, though loan growth and improved fee income partially offset the decline.
Bangkok Bank and its subsidiaries reported net profit of 20.492 billion baht for the first half of 2025, down 16.2% compared to the same period last year, with net interest income falling 12.4% due to the bank's interest rate reductions, resulting in a net interest margin of 2.46%.
Loan expansion remained a supporting factor for the bank's revenue, partially offsetting the impact of lower rates. Fee and service income improved thanks to continued growth in bancassurance and mutual fund services, along with increased securities commissions from capital market conditions and trading activity. However, other operating income declined.
Operating expenses decreased 6.5%, reflecting proper cost management alongside continuous operational efficiency improvements, bringing the cost-to-income ratio to 47.1%. Expected credit losses totaled 17.435 billion baht, down from the previous year as a result of the bank's consistently cautious reserve provisioning policy.
Bangkok Bank continued its prudent and careful business approach while maintaining appropriate levels of financial stability, liquidity, and capital. As of June 30, 2025, the bank's total loans stood at 2.678 trillion baht, up 2.7% from year-end, driven by corporate and foreign business lending. The impaired loan ratio remained manageable at 3.3%, while the loan loss reserve coverage ratio remained strong at 306.3% due to the bank's continued conservative provisioning practices.
Deposits as of June 30, 2025 totaled 3.212 trillion baht, up 0.5% from year-end, with a loan-to-deposit ratio of 83.4%. The bank's total capital ratio, Tier 1 capital ratio, and Common Equity Tier 1 ratio stood at 21.4%, 16.9%, and 16.9% respectively, all exceeding the Bank of Thailand's minimum requirements.
