Bangkok Bank 4Q17 net profit edges up 3% YoY to $269m

Overall operating earnings expanded by 9%.

Bangkok Bank's net profit goes up by 3% to $269m in 4Q17, UOB Kay Hian reports. The bank's operating profit before provisions rose by a healthier 9% yoy, boosted by robust fee income.

The bank's operating earnings expanded more impressively by 9%, making overall operation show an improving trend with higher loans growth, well-contained costs, lower NPLs and a stronger coverage ratio.

Here's more from UOB Kay Hian:

Net fees rose a healthy 25% yoy (+19% QoQ), with growth coming from all fronts, including loan-related fees, bancassurnace, mutual fund and capital market fees. For the year, net fees expanded strongly by 12%. The recent tight-up with AIA in the bancassurance business should continue to support BBL’s fee growth in 2018.

Loans, which remained flat earlier, jumped a strong 3.4% QoQ in 4Q17. This has been driven by higher loan demand from corporate, medium-sized SME and housing loans. Thanks to higher loan volume, net interest income expanded 4% YoY while net interest margins (NIM) remained firm at 2.25%. We expect loans growth to improve to 4-5% in 2018, in line with rising economic activities from infrastructure projects and exports.

Against a 5% YoY increase in operating income (net interest income + non-interest income), opex was tightly managed, up 1% YoY. As a result, the bank posted a healthy 9% YoY increase in operating profit before provisions in 4Q17. For the year, operating profit jumped 15% YoY.